Jamie Graham & Associates, PLLC
Schedule A Free Consultation 210-764-3468

Taxes can blindside people following divorce

Divorce naturally can be costly in Texas due to court costs, alimony and child support, for example. These expenses are generally expected as part of the divorce process. However, some divorce-related costs are not quite as apparent, including taxes.

First, a person's tax-filing status will change following divorce. Property division may also have a huge effect on a person in the area of taxes. Furthermore, capital gains taxes might come into play after a divorce settlement, showing up in several places, such as investments and real estate transactions.

When a martial home is sold as part of a divorce proceeding, the sale of this principal residence might not be taxed depending on the amount of gain. This is because a cap gain fee exists for individuals and couples. However, a person who withdraws funds from a retirement account/fund, such as a pension, IRA or 401k, might end up being taxed the full rate.

Going through divorce can be both financially and emotionally draining, and unfortunately, poor decisions made during the divorce proceeding can have negative consequences in the long term. An applied understanding of the law may help people going through divorce in Texas to fight for their fair share of assets and pursue their best interests when dealing with matters such as property division. If both parties are able to tackle these issues through divorce negotiation or mediation, they may be able to avoid further court intrusion. Otherwise, a judge will have to make these important decisions for them, and the outcome may not be personally favorable to either or both parties.

Source: goodmenproject.com, "How Not to Get Financially Blindsided By Divorce", Zephyr Hill, July 12, 2016

No Comments

Leave a comment
Comment Information
email us for a response

Get In Touch With Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Jamie Graham & Associates, PLLC
310 South St. Mary's Street
Suite 2500
San Antonio, TX 78205

Phone: 210-272-7034
Fax: 210-308-5669
San Antonio Law Office Map