What will the tax implications be after my high asset divorce?

Family Law specialists with over 59 years of experience.

In a high net worth divorce, tax issues loom large. Divorces, by themselves, are not usually taxable events, so you shouldn’t expect the IRS to send you a bill just because you were divorced. Nevertheless, the assets you choose to take in the divorce could have a big impact on your tax bill.

  • For example, imagine that you get real estate in your divorce decree. Real estate has many taxes, including:
    • Property taxes. You will be fully responsible for these after the divorce. You can’t go to your ex and expect him or her to contribute to the property taxes.
    • Taxes on rent. If the property is an investment property that you rent to others, then you will be responsible for paying taxes on the rent you collect
    • Capital gains taxes. If you choose to sell the asset in the future, then you will need to pay taxes on the increase in value. Capital gains tax will be based on the difference between what the asset was originally worth and what you got when you sold it.

    Gift taxes do not usually apply if a transfer is made pursuant to a divorce decree or a property settlement agreement incorporated into a divorce decree. However, there might be situations where the gift tax comes into play, so this is another concern couples should consider in a high net worth divorce.

    You also need to be aware of early withdrawal penalties for retirement accounts, if you need to cash out an account before reaching age 59 ½ . There are ways to get around this penalty, so meet with an attorney.

Client Reviews

Had free consultation. Advice given was taken, and resulted in change of mind in the other/opposing party. We therefore did not need to retain. Should opposing party resume original opinion, we will retain.

Kit

I was in a terrible custody dispute with my ex. I was very upset and afraid of my ex. Rodd listened to everything I said and remembered everything I said. He was aggressive in court and used the information I gave him very well. We won the case and my ex has backed off.

anonymous

I wanted an easy divorce from my wife. She wanted a fight. Rodd and I discussed fair terms for a dissolution. Because he was pro active and stayed on top of the case, my wife and I finally reached an agreement and had a dissolution. I highly recommend Rodd.

anonymous

I hired Linda Lawrence because I have a business and I wanted to protect it in my divorce. Linda is top notch and knows about business finance and assets. I was able to keep my business and not have to pay my wife anything from it. Hire her.

Linda

I hired Linda Lawrence because I needed an aggressive attorney. Linda was able to stand up against the other attorney and was very aggressive in court. It was an expensive divorce case, but that was because the other attorney was very aggressive and Linda was very thorough. I had great results in my case and highly recommend Linda.

Joy
VIEW MORE TESTIMONIALS

Our Practice Areas

Family Law

Attorneys for Divorce, Child Custody & More At the Lawrence Law Office, we are committed to helping families in conflict find creative solutions that focus on addressing their goals and...

Divorce

Columbus & Delaware, OH Divorce Lawyers In Ohio, there is more than one way to separate from your partner and dissolve your marriage. A divorce is typically a contested proceeding, with each side...

Contempt and
Enforcement and
Post divorce

When working through your divorce with an Ohio family law attorney, chances are your divorce agreement made allowances for child support. spousal support or

Business owner
divorce

Dividing the marital assets between divorcing people can be one of the most contentious issues during the entire divorce process. Ohio law allows the couple to work together with...

Child Custody

Dividing the marital assets between divorcing people can be one of the most contentious issues during the entire divorce process. Ohio law allows the couple to work together with...

High Asset
Divorce Cases

Helping With Child Custody, Visitation & Support Updates Or Modifications Sometimes circumstances substantially change after a divorce and require parents to revisit an existing...

VIEW ALL PRACTICE AREAS

Lawrence Recent Blog Posts

March 16, 2021 in divorce

How Do I Hire an Ohio Attorney to Handle My Divorce?

Ohio has thousands of lawyers. How do you find the right one to handle your divorce? At Lawrence Law Office, our divorce attorneys have helped…
Read More
March 16, 2021 in divorce

Do I Need to Live in the Same County as My Divorce Lawyer in Ohio?

No. There is no requirement that you live in the same county as your attorney. In fact, divorce lawyers are licensed to practice in any…
Read More
March 16, 2021 in Family Law

Do I Need a Family Lawyer in Ohio?

Disputes involving family members are inherently difficult. Few people are prepared to tackle a family law issue on their own, so hiring a family lawyer…
Read More
March 16, 2021 in child custody

Do I Need a Child Custody Lawyer in Ohio?

Child custody disputes arise in two situations—a couple with children is divorcing or two people who have never married have conceived a child. In either…
Read More