Liquidating assets prior to divorce
Generally, they are taxable as ordinary income to the recipient and tax deductible to the payer.
The parties may also agree in the contract that all alimony payments will not be taxable to the recipient and also not tax deductible to the payer.
The reports will show where the greatest tax savings lie.
If possible, I want both spouses to realize a tax savings from claiming the children.
This is not tax advice, of course, but just an estimated report.
Usually, if one spouse buys the other out of the marital home, they will also have the benefit of keeping these tax shelters moving forward.If the tax liability of the alimony greatly outweighs the tax savings, spouses might negotiate to make the alimony not taxable and not deductible, giving the recipient spouse the full value of the payment amount.Alternatively, they may choose to pay alimony as a lump sum at the time of divorce or in lieu of alimony, agree that one spouse takes a greater portion of the marital assets in equitable distribution.I also do not want this deduction to result in a wasted tax benefit to anyone.For example: A spouse with primary custody of the children is entitled by law to claim all of the children in his/her custody.