If you are going through a divorce in New York, you should consider working with an experienced family law attorney. Divorce laws vary from state to state, so it is important to retain someone who is familiar with local procedures and rules governing things like the division of assets.

Federal tax laws have a big impact in a divorce

Federal tax law comes into play during a divorce as well. When deciding how or when to split property that belongs to both spouses, such as a marital property home, you should consider whether the sale will net you better returns if you complete it during marriage or after your divorce. Typically, the tax treatment will be more favorable if the profit is earned by a married couple rather than by a single individual.

Federal tax law is also prone to change, and a good family law attorney or financial planner will stay on top of those changes. For instance, the Tax Cuts and Jobs Act of 2018 makes it so that alimony payments cannot be deducted from taxes by the payor for divorces finalized after Dec. 31, 2018. Additionally, divorced parents can no longer claim exemptions for dependents. However, there are still tax credits that may be available to separated spouses who file their taxes as married filing separately.

Taxing retirement accounts

Divorcing individuals should also speak with a professional before attempting to divide any of their retirement accounts. Some types of retirement funds are taxable events unless they are allowed by a qualified domestic relations order. Other transfers, like IRA accounts, are not taxable if the transfer is done in connection with a divorce.

The benefit of hiring an attorney

A good family law attorney does not act alone. Family law attorneys consult with other professionals, such as financial planners, who will work as a team to help you go into divorce negotiations prepared. If you have just started the separation process and do not know where to begin, consider contacting a family law attorney today.