If you’re a business owner and getting divorced, tax issues can complicate matters. Your business interests are one of your biggest assets and in many cases, your marital property will include all or part of it.
You can generally divide most assets, including business ownership interests, between you and your soon-to-be ex-spouse without any federal income or gift tax consequences. When an asset falls under the tax-free transfer rule, the spouse who receives the asset takes over its existing tax basis and existing holding period. Later on, there will be tax consequences for assets received tax-free in a divorce.
Read out latest blog post to learn more.
