Filing for divorce in New Jersey is not complicated, but negotiating financial matters and property distribution issues in the divorce proceedings can be. As couples simultaneously close the door on one stage of their life and work toward building the next stage, they face a number of decisions that, if not handled correctly, could have significant consequences later. One of the biggest problems is couples often make these decisions based on emotional reactions rather than a full understanding of future implications. This is especially true when it comes to tax matters.
Tax planning should play a prominent role in the divorce process. Unfortunately, the tax implications of many divorce-related decisions are often misunderstood, if not overlooked, by emotionally wrought couples. A recent Forbes magazine article, “Taxes and Family Law: A Cheat Sheet of What You Need To Know” just scratches the surface of some of the things you should understand about taxes and their impact on your divorce process. After reading the article, it’s easy to understand why some people choose to add a tax professional to their divorce team.