At The Blanch Law Firm, our superior understanding of the law and in-depth experience with New York divorce proceedings allows our New York divorce lawyer team to provide premier legal representation.  Divorce proceedings involve complex emotional situations, complicated financial challenges and often difficult to interpret areas of family law.  Fortunately for our clients, The Blanch Law Firm can provide exactly the kind of representation needed in any high net worth divorce case.

The Blanch Law Firm possesses a successful track record of defending clients before, during and after a divorce trial.  To learn more, Contact The Blanch Law Firm’s New York divorce lawyer team at (877) DIV-ATTY.

Divorce and Tax Challenges

Divorce trials are complicated enough without having to be concerned about the Internal Revenue Service (IRS) getting involved.  However, due to the complex finances involved in many high net worth divorce trials, the IRS seems all too interested in analyzing the final judgment, or the financial analysis involved.  While the IRS usually considers asset transfers during a divorce trial to be off limits, it’s important to have a divorce lawyer who understands the potential taxation issues.

• Marital Residence – For any jointly-owned marital residence, this asset will be a complicated matter to handle during divorce proceedings.  A divorcing couple can sell the home before the trial, during the trial or after the separation, but due to emotional ties to the residence, this may be easier said than done.  This divorce tax issue can be further complicated by capital gains tax.  When a couple sells the home, they have a two-year deadline during which they can reinvest the money in order to avoid the capital gains tax.  However, this will only apply if the marital residence is the principal residence.  If however, the ex-spouse continues to live in the house for more than the two-year period, some heavy capital gains tax may be in store.
• Mutual Funds, Stocks, Bonds, Artwork and Other Such Assets – Over the course of any marriage, wealth will be accumulated in various forms.  Dividing those assets in a divorce trial or arbitration will be tricky.  If any of these assets appreciates in value, their division must be carefully examined for the potential capital gains taxes.  For example, if a couple purchases stock at $100,000 and it is valued at $200,000 at the time of their divorce, the capital gains tax would be applied to the profit the stock generated since its purchase.  In this case, there would be capital gains tax on the $100,000.  Having a qualified New York divorce lawyer who can spot potential tax challenges in dividing assets is vitally important.
• Retirement Funds – Financial advisors claim that retirement accounts are the second largest marital asset in most cases.  Tax laws regarding retirement plans such as 401k’s are strict, requiring a skilled knowledge of accounting and tax law.  In a divorce trial, an ex-spouse may be entitled a specific percentage of the retirement plan.  At The Blanch Law Firm, our divorce lawyer team is knowledgeable regarding Qualified Domestic Relations Orders (QDRO) which allows the ex-spouse the same distribution they would receive had the marriage continued.

Obviously, the tax implications of any High Net Worth Divorce are serious, complex and overwhelming.  This is why it is absolutely necessary to procure a skilled New York divorce attorney who can utilize the skill of expert accountants to examine and analyze past, current and future financial situations.  The Blanch Law Firm is a premier divorce law firm and can handle any complicated, high net worth divorce.

Contact Us

If you need the skill of an experienced New York divorce lawyer, Contact The Blanch Law Firm today at (877) DIV-ATTY.