Divorce Tax Attorney

Getting Legal Representation for Divorce Tax Issues

Divorce and taxes are two subjects that are often difficult for people to broach. Divorces are often difficult, messy situations that are fraught with significant emotional baggage and feelings of distrust and betrayal. Taxes are complex and often difficult for a layperson to understand and grasp the multiple layers of nuances. Thus, it is no surprise that few people are enthusiastic to consider taxes in the context of a divorce.

However, understanding the tax risks you face when entering into divorce negotiations and proceedings is an essential step towards a prudent handling of the situation. Dually licensed CPA and Attorney David Klasing is experienced in handling high net worth divorce cases with criminal and civil tax consequences. As a California tax attorney and CPA who also holds a Master’s in Taxation, David understands the nexus between tax and family law concerns along with California community property considerations. He continually updates his knowledge and skills and while in Law School participated in Western State College of Law’s Family Law Clinic. David and all of the Tax Professionals at the Los Angeles and Irvine offices of the Tax Law Offices of David W. Klasing can provide careful, strategic tax guidance during a divorce proceeding. To schedule a reduced-rate consultation call the firm at 800-861-1295 today or contact us online.

To understand some of the tax traps that can snare a party during a divorce proceeding, please see a brief synopsis in the paragraphs immediately below. This synopsis is followed by a more substantial look into each concern. Also see our Q and A on this subject in our Tax Law Library.

Divorce and Family Law Attorneys Often Decline Responsibility for Tax Aspects of a Divorce

An attorney who practices in the areas of family law and divorce is often hesitant to take on the responsibility of tax law concerns. In short, most attorneys recognize the multi-layered complexity of tax law and tax considerations. Furthermore, losses due to tax advice that fails to take a comprehensive view of the situation are easily quantified and recognizable. Thus, many divorce lawyers are hesitant to step into the arena of tax law due to fear of malpractice claims. Thus, seeking a tax lawyer to handle this aspect of a divorce or separation is often not only prudent but also necessary to ensure that all relevant concerns are addressed. The bottom line here is that Divorce attorneys often draft themselves out of responsibility for tax issues in a divorce through their engagement letters and are often not properly trained in Tax Law sufficiently enough to counsel on the tax complications in a Divorce.

The Importance of Considering the Tax Consequences of a Divorce

Unfortunately, a failure to consider tax law during divorce negotiations and proceedings can have a fatal effect on your ability to negotiate a divorce settlement that is fair and equitable. The tax treatment and impact of potential alimony and child support payments must be considered. Furthermore, considerations regarding the tax treatment and associated tax basis of transferred property incident to a separation or a divorce must also be considered. Failure to do so can allow the other spouse to leverage gains incurred due to tax planning into additional transfers of property under the settlement agreement. Furthermore, he or she may strategically fund your portion of the settlement with exclusively low-basis assets that will produce large amounts of tax liability when you attempt to liquidate them.

However, potentially the most pressing need for tax guidance during a divorce is the risk of criminal tax exposure. In certain situations, a divorcing spouse may threaten to reveal the other spouse's tax crimes as a means to blackmail or extort the other spouse into conceding to transfer additional assets as part of the settlement agreement. In other cases, one spouse may be tempted to shield assets from their soon-to-be former spouse through offshore asset protection plans. These plans may result in the individual knowingly or inadvertently violating the U.S. Tax Code or foreign account disclosure laws. Furthermore, if a violation of the tax code did occur, the individual also runs the risk of facing prosecution for the alleged crimes.

More Questions?

Call Now at 800-681-1295 or review our Tax Law library answering additional questions

Listing of Divorce Tax Issues that we are ready willing and able to assist with:


  • Consideration of tax and financial consequences prior to engaging in a formal divorce proceeding
  • Divorce tax planning
    • primary income
    • gift tax effects of divorce
    • estate tax considerations of divorce
    • allocation of credits for dependent care
    • transfers outside the scope of Section 1041
      • negative basis property
      • installment obligations
      • transfers to nonresident spouse
      • premarital transfers
      • housing costs for the marital home
      • assignment of income
    • Divorce settlement trust planning
    • Transfers between former spouses not incident to divorce
      • Section 1001 and 121 transfers
    • Tax treatment of alimony and spousal support
      • tax treatment of payments of alimony arrearage
      • alimony payments to third parties on behalf of the former spouse
      • Excessive alimony recapture and front-loading of alimony tax provisions
      • considerations regarding U.S. sourced alimony payments made to a nonresident former spouse
    • Tax treatment of child support payments
      • reductions incident to contingencies

  • Tax consequences of property transfers between spouses
    • Consequences of non-recognition of built-in gain
    • Transfers of property to third parties incident to a divorce
      • Applicability of special valuation rules to property held in trusts and life estates
    • tax consequences of property transfers between former spouses following divorce
    • tax consequences of dispositions of the marital home
  • Effect of divorce on income tax filing status
    • Effect of continuing joint and several liability for tax deficiencies due to joint filing
    • Innocent spouse relief
    • Benefits/drawbacks of sole filer, head of household, joint status, etc.
    • Allocation of tax refunds
  • Divorce’s impact on eligibility for tax credits and deductions including
    • mortgage interest deduction
    • housing costs
    • dependent care
    • child tax
    • educational tax credits
    • the exclusion for gain on the sale of a principal residence
    • health insurance cost credit
    • tuition
    • medical payments
  • Effect on jointly held qualified retirement benefit plans
    • Rules entitling beneficiary spouse to qualified benefit plan’s survivorship benefits
  • Experienced Tax Attorneys Can Handle Your Divorce Tax Concerns

    For more than 20 years, David W. Klasing has practiced as a tax lawyer and addressed the tax concerns of Californians. During the course of his career, David has handled high net worth divorce cases with criminal and civil tax consequences and he can put that experience to work for you. David and the attorneys and CPAs of the Tax Law Offices of David W. Klasing can provide the insight and guidance regarding tax issues and treatment you need to avoid an inequitable settlement that is funded with low basis assets or potential extortion due to tax crimes alleged by your ex-spouse. To schedule a reduced-rate tax consultation with our Los Angeles tax attorneys or Irvine offices, call 800-861-1295 today or contact us online.

    Divorce Tax Attorney

    Getting Legal Representation for Divorce Tax Issues

    Divorce and taxes are two subjects that are often difficult for people to broach. Divorces are often difficult, messy situations that are fraught with significant emotional baggage and feelings of distrust and betrayal. Taxes are complex and often difficult for a layperson to understand and grasp the multiple layers of nuances. Thus, it is no surprise that few people are enthusiastic to consider taxes in the context of a divorce.

    However, understanding the tax risks you face when entering into divorce negotiations and proceedings is an essential step towards a prudent handling of the situation. Dually licensed CPA and Attorney David Klasing is experienced in handling high net worth divorce cases with criminal and civil tax consequences. As a California tax attorney and CPA who also holds a Master’s in Taxation, David understands the nexus between tax and family law concerns along with California community property considerations. He continually updates his knowledge and skills and while in Law School participated in Western State College of Law’s Family Law Clinic. David and all of the Tax Professionals at the Los Angeles and Irvine offices of the Tax Law Offices of David W. Klasing can provide careful, strategic tax guidance during a divorce proceeding. To schedule a reduced-rate consultation call the firm at 800-861-1295 today or contact us online.

    To understand some of the tax traps that can snare a party during a divorce proceeding, please see a brief synopsis in the paragraphs immediately below. This synopsis is followed by a more substantial look into each concern. Also see our Q and A on this subject in our Tax Law Library.

    Divorce and Family Law Attorneys Often Decline Responsibility for Tax Aspects of a Divorce

    An attorney who practices in the areas of family law and divorce is often hesitant to take on the responsibility of tax law concerns. In short, most attorneys recognize the multi-layered complexity of tax law and tax considerations. Furthermore, losses due to tax advice that fails to take a comprehensive view of the situation are easily quantified and recognizable. Thus, many divorce lawyers are hesitant to step into the arena of tax law due to fear of malpractice claims. Thus, seeking a tax lawyer to handle this aspect of a divorce or separation is often not only prudent but also necessary to ensure that all relevant concerns are addressed. The bottom line here is that Divorce attorneys often draft themselves out of responsibility for tax issues in a divorce through their engagement letters and are often not properly trained in Tax Law sufficiently enough to counsel on the tax complications in a Divorce.

    The Importance of Considering the Tax Consequences of a Divorce

    Unfortunately, a failure to consider tax law during divorce negotiations and proceedings can have a fatal effect on your ability to negotiate a divorce settlement that is fair and equitable. The tax treatment and impact of potential alimony and child support payments must be considered. Furthermore, considerations regarding the tax treatment and associated tax basis of transferred property incident to a separation or a divorce must also be considered. Failure to do so can allow the other spouse to leverage gains incurred due to tax planning into additional transfers of property under the settlement agreement. Furthermore, he or she may strategically fund your portion of the settlement with exclusively low-basis assets that will produce large amounts of tax liability when you attempt to liquidate them.

    However, potentially the most pressing need for tax guidance during a divorce is the risk of criminal tax exposure. In certain situations, a divorcing spouse may threaten to reveal the other spouse’s tax crimes as a means to blackmail or extort the other spouse into conceding to transfer additional assets as part of the settlement agreement. In other cases, one spouse may be tempted to shield assets from their soon-to-be former spouse through offshore asset protection plans. These plans may result in the individual knowingly or inadvertently violating the U.S. Tax Code or foreign account disclosure laws. Furthermore, if a violation of the tax code did occur, the individual also runs the risk of facing prosecution for the alleged crimes.

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    Listing of Divorce Tax Issues that we are ready willing and able to assist with:

    • Consideration of tax and financial consequences prior to engaging in a formal divorce proceeding
    • Divorce tax planning
      • primary income
      • gift tax effects of divorce
      • estate tax considerations of divorce
      • allocation of credits for dependent care
      • transfers outside the scope of Section 1041
        • negative basis property
        • installment obligations
        • transfers to nonresident spouse
        • premarital transfers
        • housing costs for the marital home
        • assignment of income
      • Divorce settlement trust planning
      • Transfers between former spouses not incident to divorce
        • Section 1001 and 121 transfers
      • Tax treatment of alimony and spousal support
        • tax treatment of payments of alimony arrearage
        • alimony payments to third parties on behalf of the former spouse
        • Excessive alimony recapture and front-loading of alimony tax provisions
        • considerations regarding U.S. sourced alimony payments made to a nonresident former spouse
      • Tax treatment of child support payments
        • reductions incident to contingencies
  • Tax consequences of property transfers between spouses
    • Consequences of non-recognition of built-in gain
    • Transfers of property to third parties incident to a divorce
      • Applicability of special valuation rules to property held in trusts and life estates
    • tax consequences of property transfers between former spouses following divorce
    • tax consequences of dispositions of the marital home
  • Effect of divorce on income tax filing status
    • Effect of continuing joint and several liability for tax deficiencies due to joint filing
    • Innocent spouse relief
    • Benefits/drawbacks of sole filer, head of household, joint status, etc.
    • Allocation of tax refunds
  • Divorce’s impact on eligibility for tax credits and deductions including
    • mortgage interest deduction
    • housing costs
    • dependent care
    • child tax
    • educational tax credits
    • the exclusion for gain on the sale of a principal residence
    • health insurance cost credit
    • tuition
    • medical payments
  • Effect on jointly held qualified retirement benefit plans
    • Rules entitling beneficiary spouse to qualified benefit plan’s survivorship benefits
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    Experienced Tax Attorneys Can Handle Your Divorce Tax Concerns

    For more than 20 years, David W. Klasing has practiced as a tax lawyer and addressed the tax concerns of Californians. During the course of his career, David has handled high net worth divorce cases with criminal and civil tax consequences and he can put that experience to work for you. David and the attorneys and CPAs of the Tax Law Offices of David W. Klasing can provide the insight and guidance regarding tax issues and treatment you need to avoid an inequitable settlement that is funded with low basis assets or potential extortion due to tax crimes alleged by your ex-spouse. To schedule a reduced-rate tax consultation with our Los Angeles tax attorneys or Irvine offices, call 800-861-1295 today or contact us online.

    Common Questions About Divorce Tax Issues

    1. What Should I Do About a Divorcing Spouse’s Threatened Criminal Tax Disclosure?

    2. Is a Full Disclosure of Assets Required During a Divorce Proceeding?

    3. Tax Issues Surrounding Divorce

    4. Divorce Transfer of Property and Tax Issues

    5. Divorce and Criminal Tax Exposure

    6. How Can a Divorcing Spouse (and the IRS) Identify my Undisclosed Assets / Income?

    7. Is Tax Fraud Likely to Be Disclosed During Divorce Proceedings?

    8. When Can a Divorce Result in Both a Husband and Wife Facing Exposure for the Potential Investigation and Conviction of Tax Crimes?

    9. What Happens to My Retirement Accounts in a Divorce?

    10. What Is Asset Dissipation?

    11. Should High Net Worth Couples Plan for Divorce Taxes?

    12. How are Alimony, Spousal Support, Palimony, or Child Support Payments Taxed?

    13. Can I Seek a Tax-Motivated Divorce or Annulment?

    14. Does A Divorce Create a Conflict of Interest for a Family CPA?

    15. Can Divorcing Spouses Allocate Estimated Tax Payments?