Do You Own Real Property?
If you are going through a divorce, tax and title issues can come back to haunt you if you do not take steps to protect your financial interests. At The Offices of Keane Law, LLC, in Boulder, we are here to ensure that you do not have any unpleasant surprises after your divorce. We offer a free 30-minute consultation to answer your questions.
Understanding Tax Issues And Divorce
There can be tax implications for almost every decision you make during your divorce. Here are some of the tax implications of divorce you should know about:
- Any transfer of property incident to divorce is not taxable.
- Spousal support can be taxable or non-taxable — or a portion of it can be taxable. The tax advantages of spousal support can be a trading chip in negotiations between you and your spouse.
- The tax deduction for dependent children can be given to one parent or allocated back and forth until your child is 19 and is no longer a dependent.
- If you are near the end of the calendar year, you can request that the Court hold your divorce decree until first of the next year so you can file jointly one more year.
Title Issues And Divorce
When you divorce, it’s important to ensure that your assets are properly titled to reflect the proper owner. Here are some title issues you should know:
- If your spouse is getting the home, you shouldn’t take your name off the title unless your name is also off the mortgage. Houses can be difficult to sell or refinance in today’s economy, and you would not want to be financially responsible for mortgage debt if you don’t own the home. Also, some mortgage companies include provisions in their mortgage contract which prohibit the signatories from transferring title under certain circumstances. Failure to follow provisions like this can result in serious problems, including the mortgage company calling the entire balance of the loan due.
- If the Court says that you get the car or house but your spouse refuses to transfer the title, our lawyers can force the title transfer through what is known as a Rule 70 motion.