Possessing and retaining wealth can be challenging. This is particularly true when dealing with a divorce.
Division of property during a divorce can involve real estate, 401Ks, and global assets. Coming to a fair settlement may involve self-employment income calculations. And such a division will ultimately involve tax ramifications for both parties.
Divorce often comes with unpleasant surprises
An article about property division during divorce lists some potential surprises. Mistakes can involve:
- Simple miscalculations pertaining to child custody and spousal support
- Incorrect capital gains calculations
- Failure to pay attention to taxes concerning retirement funds
- Mistakes made by distributing cash rather than corporate stocks or other assets during the division process (or vice-versa)
- Inaccurate appraisals concerning real estate values
- Understating or overstating the value of a business
- Agreeing to child support determinations that do not accurately reflect the needs of the child (special needs, education, etc.)
It’s not likely that such considerations will get any easier. As an editor of a financial periodical states, changes to the tax code will complicate matters concerning alimony. Many alimony recipients will not be able to take advantage of previous tax breaks. There are also now federal law considerations impacting the dividing of retirement plans.
Why you may need legal representation
There are many professionals in Virginia providing advice regarding the preservation of assets. Unfortunately, unless they are a licensed attorney, they cannot provide legal advice. They will not understand what a judge is looking for when it comes to the splitting of assets. They also cannot anticipate how a judge will rule.
It’s important that you have on your side an attorney who understands high-asset divorce considerations. Mistakes can be costly for everyone involved.