Taxes are something people may not like to think about. This can particularly be the case at a stressful time like a divorce. The reality though is that taxes can have significant impacts on important divorce issues. One such issue is property division.
There are all kinds of assets that could end up being up for division in divorces. Types of property vary greatly in the kinds of tax implications they can have. What particular tax ramifications a given piece of property has the potential for can greatly impact what overall financial effects getting the asset in a divorce would have for an individual. So, tax matters can have impacts on how desirable, or undesirable, a given asset would be when it comes to property division.
The important role tax implications can play regarding property division is even reflected in state law here in Illinois. The tax consequences a division would have is among the factors state law directly mentions state courts are to consider when deciding how to fairly divide marital property in divorces.
So, when in negotiations regarding property division, it can be important for divorcing individuals to not ignore the potential tax implications of the different assets that are on the table. Failing to take tax matters into account in such negotiations could lead to a person agreeing to a property division arrangement that might not be a good fit for his or her goals and interests. This could result in unpleasant surprises, something no one wants to face after a divorce.
When it comes to property division, there are many factors it can be important for individuals to consider. Having skilled guidance can help divorcing individuals with making sure no important factors, such as tax implications, are missed when it comes to their property division strategy.