Considering tax returns and inheritances in a divorce

| Sep 11, 2013 | Property Division

Couples in Tennessee understand that when two people create a union with marriage, that union may not last forever. A divorce can bring up numerous issues and details that couples do not often think would be pertinent in a divorce proceeding. Attention to detail and taking the time to go through the process effectively can avoid additional disputes and problems in the future. This is especially true when it comes to property division. The details about property and assets are essential in the distribution of marital property.

A divorce proceeding can be complex and very complicated. A recent report indicated some details that might make the process more challenging or could be overlooked. In some marriages, one person tends to handle the finances for the couple or family. This means that only one spouse handles their taxes, bank accounts and inheritances. This could be true regardless if they are considered a marital asset or individual property.

If the marriage turns sour and a divorce ensues, the spouse that handles these finances may have information and documentation that the other spouse desires. Furthermore, they might have specific information about assets, inheritances and accounts that was never divulged in the marriage. This might not only put the soon-to-be ex-spouse at a disadvantage, but could also put them in financial jeopardy. Moreover, the undisclosed information could reveal that some property is in fact personal property and belongs to a single spouse. This would change how it is distributed.

In order to better understand the finances in a marriage, the spouse seeking the information could file forms with the IRS and order a transcript of their previous returns. This could help explain any financial issues they might be disputing over. Lastly, it could help determine what category an asset falls under.

The divorce process can be complex, but couples seeking to dissolve their marriage should understand that they have options.

Source: The Sacramento Bee, “Ask the Experts: IRS records get tangled in messy divorce,” Claudia Buck, Sept. 03, 2013

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