Family Law & Taxes - Gains and Losses in Divorce

When a divorcing couple separates their assets, the division of property may well affect their taxes. For example, if you transfer property, one person will be able to claim a “gain” and the other a “loss” on their tax return. A “gain” results in higher taxes, a “loss” in lower ones. However, in a divorce, this transfer does not have to be reported as a gain or a loss. Just make sure you’re on the same page.

However, if you deal with the division of your assets by selling an item you owned together (such as a house or a car), each of you will need to claim your share of the gain or loss.

Taxes are just another layer to the dissolution of a marriage. Even those changes should become normal in the course of a few tax years.