The tax implications involved in dividing assets in Orland Park typically depend on the specific property involved. An attorney can help you identify the property that must be divided in your divorce and how taxes will come into play.
With the help of a knowledgeable division of assets lawyer, you can make sure you are reaching an agreement that is fair to you. We can work to make sure you are not paying more in taxes than necessary.
The tax implications generally associated with dividing assets in Orland Park typically follow Illinois and federal law, depending on the specific assets involved. It is important to note that there have been some changes in the law recently. For example, maintenance is no longer deductible, which is a major issue.
Similarly, division of property is generally not taxable, especially when the assets involved are relatively small. However, when significant amounts are involved, such as hundreds of thousands of dollars, there could potentially be tax liability. An attorney can help determine the tax implications in a specific case.
The tax implications associated with the increase in property value due to one spouse’s action depends upon what each party’s goals. For example, if one party grew a significant financial portfolio, there would be taxes when they take it out. The tax implications in this scenario would depend upon how the parties are trying to divide the assets.
The tax implications is one factor the court takes into consideration when dividing assets. If one party would have to suffer a financial tax burden because of how the property is divided, the court would take that into consideration when dividing it.
Similarly, there may be tax implications associated with the decrease in property value due to one spouse’s action. If they could clearly identify the intent to sabotage the marriage, the courts may consider that. For example, if one spouse tried to financially hurt the other, the courts could say that is not acceptable and may make the responsible party pay the taxes.
However, it is very difficult for the court to do this because Illinois is a no-fault state and not supposed to allocate property based on one spouse’s actions. The reality is the court has discretion and, while they may not punish someone, they could consider it when dividing property. The court could say it is what they think this is equitable and claim it was not a punishment.
There may not be tax implications on the valuation of a privately-held business unless a party is selling it. There could be taxes that the business owes, which would be a consideration when valuing a business. However, this would just be one of many factors.
Material property is taxed after a divorce in Orland Park based on Illinois and/or federal law, depending on the property. Most property is not going to have a tax. If it does, there are different tax brackets and taxes on different items. A person would have to look at the individual piece of property that is subject to tax to determine what would apply.
It can be difficult to navigate the process of dividing assets, especially if you are trying to understand the tax implications. An Orland Park attorney can guide you through the process and understand the tax implications of dividing assets. To learn more, call Reidy Law Office LLC today.