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Addressing asset values and taxes during a divorce

On Behalf of | Dec 18, 2020 | Family Law

One of the most intimidating aspects of divorce could involve the idea of making decisions regarding the division of marital assets. Identifying the true value of each asset can be a complex process, as topics such as tax rates could impact these numbers. Knowing all the factors to address concerning marital assets could help a person in Maryland prepare to make decisions concerning the future while creating a strategy for divorce proceedings.

When it comes to property division, it could be helpful to understand that even if certain assets appear to be of equal value on paper, things are not always as they seem. Certain assets may be more liquid in nature, while others might carry certain tax ramifications. Retirement accounts and investments are two examples of assets that when divided, could be subject to tax fees or penalties under certain scenarios.

With certain retirement accounts, one may need to obtain the necessary documentation to divide assets within without incurring tax penalties. Another asset that could be difficult to value is the family home. While seeking an appraisal of the home’s value may be helpful, this number might not include the costs of maintaining the property.

Taking the necessary steps to better understand the value of assets and the possible tax concerns involved with each in turn may be vital to preparing to protect one’s future during a divorce. Those who remain uncertain of how best to approach the process could find it helpful to consult with legal counsel early on for advice on all their options. An attorney in Maryland can work with a client in addressing all the necessary financial issues involved and assist in creating a plan to seek the most favorable outcome achievable concerning his or her future during legal proceedings.