Have You Overlooked These Issues in Your Texas High Asset Divorce?

 Posted on November 26, 2015 in High Asset Divorce

The more assets you and your spouse have, the more complicated your divorce will be. Trying to manage the emotions as well as the future financial impact of the breakup of your marriage is a big job. Before you get too far into discussion about how to split up the property or how support should be paid, make sure you don't overlook these common issues in high-asset divorces.

IRS and Asset Transfer

In a typical divorce, the transfer of ownership of property or assets from one spouse to the other does not create a taxable event. The IRS is not going to charge you income taxes for giving your spouse title to the car in the divorce.

However, in many high-asset cases, some property is not held in the name of either spouse. Instead, a closely held company or some other form of holding company may hold title. When assets are transferred out of corporate ownership the transfer may create a tax obligation.  Make sure you understand the possible tax ramifications of any transfers.

Business Losses and Future Tax Deductions

Profits and asset appreciation are the main focus when evaluating the value of the marital property in a divorce. However, sometimes business losses carry the potential for significant future value. Business losses can be carried forward to reduce future taxes for several years, but the IRS does not allow for business losses to simply be transferred for tax purposes. Instead, only the spouse that incurred the loss can claim it in the future.

The possible value of business losses may be used as a bargaining chip when determining a fair division of the marital property.

Missing or Hidden Assets

The more assets there are and the more complicated the finances are, the easier it is for assets to be forgotten, withheld, or actively hidden. It is vital that you have an aggressive divorce lawyer helping you find all of the marital assets.

If you do not do everything in your power now to discover hidden assets, you may never find them. Failing to look for hidden assets could cost you thousands of dollars or more in the divorce.

If you have a high-asset divorce, you need to consult with an aggressive Leander high asset divorce lawyer. Protect your rights and get what you deserve out of your divorce. Call Powers and Kerr, PLLC today at 512-610-6199 to schedule a consultation.

Source:

http://www.statutes.legis.state.tx.us/Docs/FA/htm/FA.3.htm