Tax considerations in Texas property division matters

On Behalf of | Jan 11, 2015 | Property Division

Taxes can affect a great many things. They can even have implications in family law matters. For example, tax issues can have impacts in property divisions in divorces, as tax issues are one of the many things Texas courts can take into account in property division matters.

Certain assets in a divorcing couple’s marital estate may have tax burdens associated with them. Whether a given marital asset is a taxable one and, if it is, when specifically tax payments will be required to be made in regards to the asset are both things that Texas law authorizes courts in the state to consider when deciding what sort of property division in a divorce would be “just and right.” 

It makes sense that courts would be allowed to consider these things. The presence of a tax burden can influence what the overall financial impact of a given asset is. One can see how this could affect what the fairest way to deal with the asset in a property division would be.

Just as judges can consider tax issues regarding marital property in property division proceedings, tax issues are something divorcing parties may want to keep in mind when trying to negotiate a property division settlement to eliminate the need for a court to dictate the terms of a property division. Experienced Texas property division attorneys can help divorcing individuals who are in property division negotiations with their soon-to-be ex take into account the various things that can impact the true value of the property in the marital estate, including tax issues.