The Effects of Taxes and Inflation in Divorce

A divorce financial planner or tax accountant can reduce the total taxes a spouse pays during separation and after divorce. The spouses can share this money (and both should remember that their divorce will make them poorer for a while). Both spouses are liable for taxes due as a result of audits on joint returns, so it is in their best interest to work together and minimize possible tax liabilities.

Disregarding the impact of taxes in a divorce settlement can be costly. After the divorce is final, a party may get taxed on the marital assets received in the settlement. The only way to know if a settlement is a fair deal is to determine the value of the investments on an after-tax basis. A tax professional can advise about the impact of any proposed property division.

At the same time, sometime people forget about the effects of Inflation, which erodes buying power. A college education or retirement years in the future can be profoundly affected by inflation. The Rule of 72 means that prices double in 24 years (72/3=24) when inflation in 3 percent and at 5% inflation double in 14.4 years (72/5=14.4).



Useful Online Tools

Suggested Reading
Divorce & Money: How to Make the Best Financial Decisions
This book is a practical guide to evaluating assets during divorce. It explains how to determine the real value of marital property including houses, businesses, retirement plans and investments and how to negotiate a settlement that is fair to both sides.

Authors: Violet Woodhouse & Dale Fetherling


Related Article Archives
Financial Planning & Divorce
Property & Debt Division
Property Valuations
Premarital Agreements
Tax Aspects
    All Article Archives

Related Categories
Alimony & Spousal Support
Divorce, Dollars & Debt
Estate Planning & Divorce
Insurance & Divorce
Taxes & Divorce
    All Categories
Related Forums
Bankruptcy
Financial Aspects
Pensions
Property & Debt
Spousal Support
Tax Aspects
    All Forums

Resources & Tools

Bookstore Promotion Discount

Start Your Divorce Online Start Your Divorce
Several Options to Get Started Today.
Divorce Tools Online Divorce Tools
Keeping it Simple to Get the Job Done.
Divorce Downloads Download Center
Instantly Download Books, Guides & Forms.
Divorce and Custody Books Discount Books
Over 100 of the Best Divorce & Custody Books.
Negotiate Online Negotiate Online
Settle your Divorce and Save.
Custody and Support Tracking Custody Scheduling
Make Sure You Document Everything.

Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Enter Your Zip Code:

 

Women's Book ABC’s of Divorce for Women

ABC’s of Divorce for Women

ABC's of Divorce for Women

 

Men's Book The Survival Manual for Men in Divorce

The Survival Manual for Men in Divorce

The Survival Manual for Men in Divorce

 

Featured Download Tracing Separate Property Through A Commingled Bank Account

Tracing Separate Property Through A Commingled Bank Account

Tracing Separate Property Through A Commingled Bank Account

Start Reaching Potential Clients Through Divorce Source. Learn More

Guarantee Official PayPal Seal Facebook Twitter Versign Secure Site
Limited Offer Women's Rights Manual For Divorce
Cover Price: $55.95
Your Price: $29.95
You Save: $26.00

"The Absolute Best Investment in Your Divorce"

Men's Rights Manual For Divorce
Cover Price: $55.95
Your Price: $29.95
You Save: $26.00

"Uncover Your Options and Unleash Solutions"