Tax Implications of Property Division

Division of Marital Assets in Texas Divorce

If you and your spouse have a large and complex estate, it is imperative to work with a Texas property division attorney who has experience in handling the division of complex marital assets. We do not give tax advice, but we work closely with your accountant or financial advisor.

At the law office of Texas divorce attorney Steven Wm. Buholz, we understand that different assets will have significantly different tax consequences upon division, cash-out, or sale. It is imperative to understand the tax implications early in the property negotiation process so that an equitable property agreement can be reached.

Contact our law office to learn more about the pre-tax and post-tax implications of your options.

Pension Plans and 401Ks: Will you be splitting a retirement plan or a 401K, accepting a lump sum payment, or sharing in actual payments upon reaching retirement age? If your pension plan is administered by your employer, what are their requirements? Will a QDRO (qualified domestic relations order) be needed in order to protect yourself from incurring taxes that should be the responsibility of your ex-spouse? Texas property division attorney Steven Wm. Buholz will thoroughly review the requirements of your pension plan to ensure that these issues have been considered.

IRAs: Some IRAs provide income that is not taxable. The distributions from other types of IRAs, 401Ks, and from all pension plans will be at least partly taxable. We ensure that the tax burden has been considered before the settlement agreement is reached and that you are not unfairly penalized.

Marital Residence: The IRS allows a homeowner to sell a home and buy a new residence within a certain time period without paying capital gains tax. How will this IRS ruling affect your case? Given the emotional turmoil surrounding a divorce, few people think of the tax consequences of the sale of a home: we do. We protect our client's interest in the rollover of capital gains from the immediate or deferred sale of a home.

Business Buy-Out: Properly valuing a business is only the first step. How the buy-out is structured will determine whether it is taxable at the ordinary income rate or the lower capital gains rate.

At the Law Office of Steven Wm. Buholz, we ensure that each member of the couple understands the marital assets and the tax implications of asset division and spousal support.

Contact our Dallas law office to speak to divorce lawyer Steven Buholz regarding your property settlement concern.