Family Law Blog

Future Tax Implications Should Always Be Considered in Colorado Divorce Cases

By Denver Divorce Lawyer on September 29, 2010

A recent article in The Boston Globe discusses the significant impact that division of property can have on a divorcing individual’s financial well being. That is, while many couples filing for divorce often consider a 50/50 split to be the most fair and logical division of the assets, such an approach should only be considered if all details, particularly tax details, are fully examined prior to any decisions becoming officially binding. To ensure this, it is recommended that divorcing couples retain the services of divorce attorneys who have experience handling divorce cases in which division of assets being equally split is not in the best interest of both parties.

According to the article, consideration is often given to how much an item is worth. However, divorcing couples often disregard the fact that tax exemptions are different for single people than they are for married couples. As an example, the article presents the hypothetical situation of a house that has appreciated in value. As a couple, the amount of tax exemption is substantially greater than the exemption would be for a single person. Therefore, if a house that has appreciated in value is sold, a married couple may be able to realize, hypothetically, $500,000 of gains, while a single filer may only be able to realize, say, $250,000 of gains. If appreciation is greater than the allowed exemption amount, then a substantial amount of tax will have to be paid on the house, which could have been prevented had the divorcing husband and wife remained co-owners of the property, and thus exempt from a greater amount of taxes.

Regardless of the sentiment felt between two divorcing parties, it is essential that all financial matters, particularly those that don’t immediately impact either party (such as appreciated stock portfolios that have yet to be sold) are thoroughly examined to determine the most logical decision to be made regarding their sale in the future. At Kaplan Law, LLC, our Colorado property division attorneys will ensure that all details pertaining to your assets and property are taken into careful consideration during your divorce proceedings. For more information, please contact a Colorado Springs divorce attorney today at 1-877-527-5260.

Much to Consider With Division of Assets

By Denver Divorce Lawyer on October 7, 2009

In divorce proceedings, division of assets can be especially problematic, particularly if divorcing parties are not on the best of terms and emotion is conflicting with what law deems is necessary in dividing said assets. According to About.com, property is placed into one of two categories: marital or non-marital. Marital property is that which was accumulated by either or both parties during marriage, while non-marital property refers to those goods that were acquired on an individual basis by each member of the divorcing party prior to that party’s marriage.

Marital property is split up amongst divorcing parties in an equitable manner, not equal. The split need only be deemed fair and just by the court system, and does not have to equal an exact 50-50 split of acquired assets. However, there are certain assets that, while having been acquired during marriage, are not considered to be marital property. Gifts, property acquired in exchange for property that was acquired prior to marriage, and property that the divorcing parties have agreed upon not to be included in marital assets, are all items that cannot be equitably divided, in addition to non-marital property.

In dividing property, numerous details are taken into consideration. How much a spouse contributed to the overall well-being of the marriage is taken into consideration, as well as the value of the property belonging to each spouse, how long the two members of the now-divorcing party were in fact married, and who will assume custody of the children (if present). It should be noted that much weight is placed upon the needs of the children, as their general well-being and ability to cope with the divorce with as much ease as possible are both high priorities of the court system. Furthermore, “the age, health, occupation, amount and sources of income, vocational skills, marketable skills, estate, liabilities, and needs of each of the parties”, as well as an individual’s ability to reasonably acquire future assets and income, are also taken into consideration to help make the division of assets as equitable as possible.

If you are going through a divorce, and would like to protect your assets and matrimonial rights, don’t hesitate to contact a skilled divorce attorney at Kaplan Law, LLC. Our experienced Denver property division attorneys will fight for your best interests, and will ensure that your right to an equitable division of assets is not infringed upon. Please call us today at 1-877-527-5206 for more information.

Source Article: http://divorcesupport.about.com/od/propertydistribution/f/propertydistr.htm