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Tax problems can be solved in a divorce situation

On Behalf of | Jan 14, 2016 | Divorce

Getting a divorce, or making the initial decision to divorce, is usually a fairly simple decision. It may not be easy but it is obvious to you that it needs to happen. It can be an all-encompassing thing that happens in your life. Making decisions during the divorce process is important. There will be actions that you can take to protect yourself against a heavy tax bill.

Asset and debt distribution will be a subject that will need to be addressed, probably more than once. Finding a distribution of property that seems fair to both of you can be daunting without a legal professional who can guide you to good decision making. Colorado law states that you both must be equal in the debt and asset distribution. If you inherited property or had assets before you got married, those are yours to keep. If you made improvements with that money to the family home, the total amount of the home, with the improvements, will be split equally.

If you have a retirement account that must be split, the amount again must be fair to both parties, even if one spouse stayed home and the other worked. Having an attorney who is experienced in this area can be an asset in itself. There can be significant tax consequences if the distribution isn’t done correctly.

Another issue that can cause tax problems is the matter of child custody. You need to decide who will claim the children on their income tax. It will be an emotional issue so having someone involved who is clear-headed can be a boon for you and your divorce. Advocacy from Keane Law, LLC, can make a big difference.