Deciding to file for divorce can be one of the most straightforward decisions that a Florida couple has to make as the partners work toward separating their lives from each other. Other choices regarding how they will divide their property can be particularly challenging if they are not prepared to weigh the financial consequences of either selling off or acquiring the ownership of property they previously owned with their spouse.
For example, a divorcing couple that shares a home may choose to sell the property and split any proceeds that they earn from the sale. But, if the proceeds are reinvested in a timely manner, the partners may have to pay capital gains on their earnings. Additional legal requirements attach to avoid the imposition of capital gains on a property sale, and readers who have questions about this specific issue are asked to discuss their inquiries with family lawyers in their communities.
Other financial assets, such as stocks and bonds, can be subject to capital gains taxes when divorcing spouses must separate their jointly held assets. The party who buys stocks from his spouse will generally foot the bill for any increases in the price of the stock between when it was originally purchased and when it was sold from one divorcing spouse to the other.
Though not all transfers of property and assets between divorcing spouses are taxable, many of the property transfers that couples must make will introduce either or both of them to tax liability. Individuals who are engaged in high asset divorces can stand to incur heavy tax bills as they work through their property division negotiations.