Good morning,
The accountant does not know the answer he told me to ask a lawyer. What is the law in this area?
Can a future tax factor on pensions and commercial real estate properties be included in a divorce settlement? If my husband gets half my pension when I retire can I deduct a % from the pension at today’s value. This would lower the value of what would be split. I have asked several accountants and they all say ask the lawyer. Who can I turn to ???
Thanks,
Wendy
Future tax consequences are considered in Equitable Distribution, if brought to the Court’s attention at trial. In the case of a pension, these assets are divided by a unique type of court order which allows an account to be divided without being taxes as a present day withdrawal.
So now that you are telling me my pension cannot be taxed at a present day withdrawal in court. Can a future tax factor be included in the divorce settlement on commercial real estate property that my husband and I own together? He will be keeping the properties; my name will be coming off the title and deed. And he is deducting $28,000.00 which he calls deferred tax liability from a like kind of exchange. If I cannot factor a deduction on my pension how can he factor a deduction on the properties if he is not selling them today?
Thanks,
Wendy
Future tax consequences are considered by the court in dividing property.
If possible the court will divide the pension in such a way that neither party suffers a loss with a present tax.