Will I be taxed for money or property I receive after a Florida divorce?
Equitable distribution of property requires the court to divide the marital assets, including property “equally”, absent the written agreement of the parties. If tax consequences are not considered when dividing assets, the ultimate division is often far from being equal.
It is the Miami divorce attorney’s role to investigate the tax implications of the proposed division and to advise the client accordingly. In particular, the difference between the fair market value of an asset and its tax basis must be taken into account when evaluating whether there is an “equal” division of the marital estate. In negotiating settlements, the parties are free to discount property based on built-in tax liability associated with an asset.
If you either pay or receive spousal support or alimony you will need to be concerned with the potential tax ramifications of these sums. If a spouse receives spousal support or alimony, the amount received usually is treated as income to the recipient and a deduction from income of the person paying the money. Furthermore, if one of these orders also contains an additional amount for child support, the entire amount received, including the child support component, may be considered income to the recipient for tax purposes unless the order of court states otherwise. If the order is solely for child support, there are no tax consequences for the receipt or payment of the money.
If you are facing a Florida divorce, and would like to speak with one of our Miami divorce attorneys, about the potential tax consequences involved, contact Vari & Associates. Consultations are available in Miami and at several meeting locations throughout Dade and Broward Counties including Lincoln Road in Miami Beach, West Country Club Drive in Aventura, Hollywood Boulevard in Hollywood and in the Homestead area. Appointments are also available by telephone and via Skype internet video chat. Telephone our office at (305) 222-7351 or send us an email to schedule a consultation.
When scheduling a consultation, please inform the secretary if there are any pending hearings, deadlines for filing an appeal, or other reason why you may need an immediate appointment. We will do our very best to accommodate your schedule in setting an appointment.
The statements in this section are based on Florida law and have been issued to inform and not advise. The statements are general in nature and individual facts in a given case may alter their application or involve other laws not referred to here.