Virginia Tax Debt After Divorce Lawyer
A divorce is a complicated and overwhelming situation with many layers of obstacles. With the emotional issues involved, a separate list of financial issues must also be addressed when separating merged finances. Divorcing couples have a plethora of financial obligations that must be divvied up accordingly. This could include property, custody, and debt. To avoid the common tax problems associated with divorces, couples who have filed jointly must decide who owes what respectively.
Failing to apportion back taxes or resolve other tax-related problems may complicate matters severely, and often exacerbate the trauma experienced on both sides. Divorcing couples must understand how their tax debt will be considered and to what degree of impact the separation will have on their tax filing status.
Speaking with a skilled Virginia tax debt after divorce lawyer is highly recommended. An accomplished attorney could guide you through the variety of tax complications that naturally arise when dealing with cases of this manner.
Tax Debt in Virginia Divorce Proceedings
In most cases, tax debt is seen as any other tax debt situation. When the divorce settlement determines each party’s financial responsibility, tax debt is included. This could entail:
- Mortgage balances
- Business debts
- Support payments
- Criminal fines and restitution
In Virginia, both parties are encouraged to come up with a settlement on their own and present it to the court. If either side disagrees, the court may divide the properties for them.
Virginia is an equitable distribution state, where the court will consider a variety of factors to determine a “fair” division of marital property. It is important to note that the split may not necessarily be a 50/50 split between the two parties. A seasoned Virginia attorney could explain how tax debt may impact individuals following a divorce.
The Role of “Equitable Division” of Marital Property and Tax Debts
As stated before, Virginia follows the equitable distribution law for the division of marital property and taxes in divorce proceedings. Marriage is considered an economic partnership. As dictated by Virginia law, property and debts must be classified as separate, marital or part marital and part separate. Items may also be equitably divided based on value.
One of the most time consuming and complicated areas of divorce involves careful classification and valuation of tax debts. Since the courts prefer equitable distribution in divorce cases, the consequences of divorce may be less severe due to the fair division of said debt. It is important to understand that equitable distribution does not necessarily mean “equal”. If that were the case, the tax debt would be split right down the middle. Equitable division refers to division based on what is just and fair.
Judges may decide fairness based on each spouse’s ability to support themselves following the divorce, whether one spouse contributed more than the other, and who may have been responsible for the divorce. Thus, an 80/20 percent division of marital property and tax debts may be considered “equitable” under Virginia law. Individuals are recommended to consult a Virginia attorney skilled for assistance with handling tax debt after a divorce.
Resolving Virginia’s Divorcees’ Tax Concerns
The financial consequences of a divorce could be impactful in a variety of ways. Dividing debt and spousal property is undeniably arduous, emotional, and time-consuming. Ensuring equitable distribution and accurate valuation of tax debt is crucial to a fair split. Hiring a competent Virginia tax debt after divorce lawyer can best serve to protect the things most important and fight to ensure equitability.
