Filing Tax Returns after Divorce, Part 3
In two recent posts we looked at some aspects of income tax filing for newly separated or divorced individuals, and specifically some of the tax implications of support payments, including child support and spousal support. Today we are going to look at some of the tax implications of dividing marital property in divorce. Understanding tax treatment of property transfers is not only important for filing taxes correctly, it can also help with decision-making. For example, you may want to reconsider buying out your spouse’s share of the family home if you think it will leave you with a high tax liability down the road. Read more