One of the most important aspects of the divorce process is tax planning, yet it is possibly one of the least understood. Taxation issues are an essential aspect of most divorce cases and must be carefully handled prior to the dissolution of the marriage. Indeed, tax issues can determine certain aspects of the litigation. For instance, where one spouse earns substantially less than the other, various tax strategies can be used to legally shift income from the higher-earning spouse to the lower-earning spouse.
All of the available tax strategies are too numerous to reference and may change due to the needs of the parties, the complexities of the case or with new tax regulations and revenue rulings. When you’ve got a business to run and teams to lead, something life-altering like a divorce, can take a lot of time and due diligence. So here’s a non-exhaustive review of the basic taxation rules you should know about in matrimonial litigation.
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