Financial Complications in High-End Divorce Cases
Division of property is not the only complicated consequence of a high-end divorce. There are many other factors that must be considered, not the least of which are the tax implications. If you are in the process of going through a high-end divorce in Pennsylvania, please make sure you understand its potential impact on your taxes.
Your divorce will affect your taxes, but there is no hard-fast rule to help you predict how much your taxes will change. Child support payments are not taxed but receiving spouses are taxed on spousal support. Property transferred from one spouse to another during a divorce is often taxable as well. There are even specific tax laws in place that may affect the transfer of U.S. bonds, life insurance, annuities, and the sale of a principal residence. Additionally, there are tax questions that may arise in relation to retirement plans.
There are other consequences of a divorce that are typically unique to high-end divorces. An attorney will be needed to assess and divide equitably retirement accounts, investments, child bank accounts, deferred pay-raises, potential bonuses, cash, properties, and businesses. The involvement of these complex assets make high-end divorce more complicated than most normal divorces.
Additionally, there are still the issues that arise during any divorce such as property division, child support, alimony, and other related issues. The negotiation process will determine who gets to live where, who has primary custody of the children, how the assets are divided, and many other important decisions.
It is crucial for anyone involved in a high-end divorce to have a skilled Pennsylvania divorce attorney on his or her side who has recent experience handling similar cases. High-end divorces involve financial obligations, tax complications, and asset protection. You and your family’s best interest must be considered during every step of the process.