Taxes may not be your clients’ top priority when you are helping them through their divorce, but many decisions made during this time can affect their situation. Sometimes these decisions can be costly. Listen as Rachael Leberstien, senior wealth relationship manager, discusses the 10 Tax Considerations in Divorce with Sharon Klein, president, Family Wealth, Eastern U.S. Region and head of the National Divorce/Matrimonial Advisory Practice.
Tax issues clients and their advisors should discuss before a divorce is finalized.Taxes may not be the top priority of your clients when you are helping them through a divorce.There are many decisions made in a divorce that can impact your clients’ tax situations for a long time.These decisions can be costly and if you are not aware of the tax implications, then any additional tax costs may not be accounted for in the divorce settlement.
Don’t leave money on the table or with the tax man. Determining the proper division of retirement assets in a divorce and the actual distribution of these assets is very complex.Learn about the importance of the QDRO in splitting retirement plan assets in divorce.Each type of retirement asset must be handled in a different manner, so it’s important to consult with your tax advisor.