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Planning your taxes during a divorce

On Behalf of | May 4, 2022 | Uncategorized

Getting a divorce in Illinois can be a complex affair. There are many details to consider. The welfare of your spouse and any children you may have will be an issue. There will also be the issues of any taxes that must be paid. This is a matter that will need the aid and counsel of experts to settle.

You need to disclose your financial info

There will be many issues for the court to consider. These will include the matter of your business interests in divorce. During the process, both parties will need to give a full disclosure of all of their financial info. If either party attempts to hold back info of this kind, penalties can be assessed.

If you are planning to transfer property to your spouse, consider the issue of potential tax liability. In most cases, this liability will not come into play until the assets in question have been sold. However, a full accounting of these assets can be prepared in advance for best results.

Other issues to consider during a divorce

There are plenty of other issues to consider that concern the division of finances after a divorce. For example, your retirement plan benefits will normally be taxed as if the recipient has received these benefits under their own plan. This taxation will take place regardless of whom the plan in question originally belonged to.

When it comes to preparing your taxes during a divorce, you may want to hire a forensic accountant, an expert who can help you prepare your tax returns during this confusing and complex time. A forensic account is skilled in the type of accounting that will be needed to navigate these complex tax matters.