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Divorces involving high assets affected by tax law changes

Taxes are often far from the minds of divorcing spouses in Texas during the process of dissolving a marriage, but taxes can present themselves with unexpected costs in time for those who are unprepared. Kiplinger has published findings by a tax attorney that show some divorcing spouses may face higher taxes with changes in the various laws regarding payments for alimony and child support after a divorce.

These findings also point out that certain divorcing individuals may be affected by state laws requiring specific deadlines for divorce filings in order to avoid higher taxes. In California, for instance, waiting periods may affect how a divorce filing ends up costing more for some people who are already in the process of negotiating settlement terms.

Kiplinger also points out that divorces for people over the age of 65 are on the rise and have almost tripled. For older couples, dividing assets may become more complicated as retirement savings, pensions and other financial vehicles come into play. In some situations, these couples are required to file a qualified domestic relations order to divide payouts by a certain dollar amount or percentage. Even then, age considerations may affect the amount of taxes and penalties that are either due during distribution or that are withheld if the money is moved into an individual retirement account.

With all of the complexities involved in the equitable distribution of financial assets in a divorce, couples often turn to the assistance of a high asset divorce attorney for help. Asset division dispute concerns are common among couples who have spent years accumulating wealth, but these issues can also affect younger couples who have only been married for a short period of time. A divorce attorney will typically be able to offer advice and representation to a divorcing spouse in such a situation to alleviate undue financial burdens involving taxes, spousal support and investment or retirement accounts.

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