Tax Consequences
MARYLAND: Solomon v. Solomon, ___ Md. ___, 857 A.2d 1199 (2004).
Tax liabilities can be considered as a division factor only where they are not speculative. The trial court did not err by holding that the husband could pay the monetary award without liquidating his retirement accounts, so that he would not actually incur tax liability arising from that liquidation. The husband did not dissipate marital property by forfeiting his interest in a corporation in exchange for being released from a debt. The trade turned out to be unwise, but an unwise business decision is not equivalent to dissipation.
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NEBRASKA: Schuman v. Schuman, 265 Neb. 459, 658 N.W.2d 30 (2003).
The trial court erred in treating jointly titled property as marital where the property was successfully traced to a separate source. There is no rule that jointly titled property is automatically or presumptively marital, as the classification of property does not depend upon legal title. Contrary authority from the Nebraska Court of Appeals is overruled. The trial court erred by subtracting the tax consequences of a hypothetical future sale from the value of the husband's business where no actual sale was contemplated in the near future. Where the husband paid $35,000 for his business two years before the marriage, the trial court properly recognized a $35,000 separate interest at the time of the divorce, even though the business had little value at one point during the marriage.
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