My friend Arnold is a CPA. We often discuss the tax aspects of divorce. Recently over dinner in Tucson, he recently gave me an article by John F. Raspante, CPA and Arthur Garcia, Esq. from a publication of the New York Society of Certified Public Accountants dated of all dates April 15, 2010 entitled “5 Financial and Income Tax Pitfall to Avoid in Matrimonial Dissolution.” I knew the items but they are worth repeating.
Pitfall 1: Sale of Principal Residence – Capital Gains
Pitfall 2: Qualified Domestic Relations Order (QDRO) – Alternate Payee (Pension)
Pitfall 3: Insuring the Property Settlement – The Revenge of Death (Life Insurance)
Pitfall 4: Unsecured Debt – The Irresponsible Former Spouse
Pitfall 5: Closely Held Business – The Investigation and Valuation
When you get a divorce you should make sure these and many more pitfalls are discussed with your mediator, attorney, and accountant.
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