Tax Implications When Divorcing in Florida
Many divorcing couples are surprised to discover the many tax implications that will apply in various aspects of their divorce. In particular, high net worth divorces are susceptible to difficult taxation matters. Understanding how taxes can be beneficial or detrimental when negotiating a marital settlement agreement is crucial. Hiring a divorce attorney who can associate with a tax expert is very important because tax ramifications are important to protect a client’s best interests. At Nilo J Sanchez & Associates we have decades of experience and realize the implications it has in each unique case.
High Net Worth Divorces Florida
High net worth divorces where stock and capital gains and other assets are part of the divorce settlements require the expertise of a skilled professionals. Hidden tax implications may apply if for instance a husband or wife sells investments after they are transferred from one party to the other.
In Florida, divorcing couples must comply with the equitable distribution of assets; however, when there are many assets that were designed to create additional wealth or meant for retirement, couples may not wish to liquidate when they divorce. Some spouses may decide that they would rather change their investment trajectories and others may wish to preserve their investments and equally distribute them. This is just one aspect of taxation in high net worth and contested divorces that may arise.
Real Estate in Florida Divorces
Again, capital gains taxes may be considered when your divorce attorney is calculating the distribution of assets.
Every divorce situation is unique and you must consider things such as how long you have owned your home, what you wish to do with your home after the kids move away and all other anticipated tax ramifications. Divorce attorney Nilo J Sanchez & Associates will inform and advise you of your options and obligations under Florida’s Equitable Distribution Law, focusing on all aspects of the property division law and how your choices may effect your future.
Divorcing Couples With Children
If you have children and you are divorcing, child support will be a key factor in your divorce settlement. The child care dependency exemption must be considered and negotiated in contested divorces and in cases where unmarried couples with children will be timesharing. Each family law situation is unique, therefore, our attorneys are equipped in all aspects and prepared to make recommendations based on the specifics of each case. At Nilo J Sanchez & Associates, our divorce and child support attorneys are experts in divorce and children’s matters including child custody, time sharing and child support.
In Florida, there are different types of alimony that can be awarded to a husband or a wife in a divorce. When alimony will be a consideration in a divorce, particularly in long duration marriages, you will want to hire a Tampa Bay divorce and alimony attorney who understands every aspect of Florida alimony.
Your Tampa Bay Divorce and alimony attorney MUST understand the new tax laws as it applies to alimony and taxation. The TCJA is a new law that eliminates deductions for alimony payments required by 2019 divorce settlements. Depending on what your role is in the divorce with regards to alimony, be aware that:
For payments required under divorce or separation agreements that will be executed after Dec. 31, 2018,the deduction for alimony payments will be eliminated under the new law. Recipients of affected alimony payments will no longer have to include them in taxable income after this date.
However, if you anticipate that you will be paying alimony, finalizing a divorce prior to the cut off date of December 31, 2018 may be in your best interest if you are wishing to deduct any portion of the alimony under the current law.
In short, if you are filing for divorce in 2018, finalizing your divorce before year’s end, may be more or less beneficial to one spouse than the other depending on who will be paying alimony. If you are concerned you should speak to a divorce lawyer promptly to decide the course of action that is most beneficial to you.
Family Law & Divorce Attorneys Serving Tampa, Brandon, Lutz, Wesley Chapel, Clearwater, St. Petersburg, FL & Surrounding Jurisdictions
If you have been served with a petition for dissolution of marriage and wish to consult with our experienced divorce attorneys at Nilo J Sanchez & Associates, please contact us for a consultation as soon as possible. If you wish to file for a petition for dissolution of marriage in a contested divorce, reach out to the Tampa Family Law Firm of Nilo J Sanchez & Associates. Our team of Florida family law legal experts and divorce attorneys represent and fight for the rights of both men and women in Hillsborough County, Pinellas and Pasco County Florida.
Call 813-879-4600 today for assistance.