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Term Definition Latent - concealed, hidden, such as a tax liability.
Application in Divorce In a divorce, one frequent area where a latent tax capital gains.

Other assets containing latent tax liabilities are tax qualified IRAs, Keoghs, 401(k)s, 403(b)s, 457s as well as profit sharing plans, mutual fund shares, stocks and any investments that have appreciated over time.

See also Capital Gains.