TV fans in Texas may be interested to learn about how in the settlement of a heated divorce case between Pamela Anderson and Rick Saloman, the former "Baywatch" star received $1 million from her ex-husband. During the divorce proceedings, Anderson made allegations about tax evasion on Saloman's part. They were first married for two months in 2007 before seeking an annulment. The couple remarried in 2013 for the second time. Anderson sought divorce from Saloman in 2014.
The Anderson-Saloman divorce case highlights the importance of tax issues in divorces. The Internal Revenue Service often uses allegations in divorce cases as a basis to seek out filers for tax evasion or fraud. It has become a common practice for the IRS to audit individuals after their divorces.
In divorces, alimony and child support are considerable taxable income for the spouse receiving them and tax-deductible for the exes paying them. Real-estate property is tax-free during the divorce process, but the person who owns the property after divorce holds responsibility for paying the taxes. Couples who are not married face taxes when transferring property from one person to another. If the ex-spouse chooses to sell the property after a divorce, the individual would have to handle any taxes related to the sale. When couples split up assets, both partners are responsible for a portion of the taxes.
In high-asset divorces such as this one, liability and property division can be a highly-contested issue. Both parties may fight for certain assets, such as money earned during the marriage. Taxes can be a consideration for couples seeking divorces. Spouses may base their decisions on which assets to go for during a divorce on the annual taxes on that property. An attorney with experience with property division may be able to assist couples in reaching agreements over how to split up their assets and handle tax issues during a divorce.