Divorce, Your Home and the Capital Gains Tax
Posted September 12th, 2013 by Anthony Carbone, PC.
Categories: Family Law.
If you are preparing for a divorce and you and your spouse own a home, it’s important to consider your plans for the house and the potential for the capital gains tax to affect you.
Newark, New Jersey, divorce attorney Anthony Carbone can help you understand your options regarding your home as well as whether the capital gains tax may apply based on your individual circumstances. Please call the Law Offices of Anthony Carbone at 201-963-6000 to schedule your personal consultation with Mr. Carbone.
Whether or not the capital gains tax will impact you as part of your divorce proceedings depends foremost on what you and your spouse decide to do with your home. The transfer of property between divorcing spouses is generally not taxable, but the capital gains tax may pertain if your house is sold at the time of the divorce or if one spouse buys out the other’s stake in the house and later sells the home.
The application of the capital gains tax is complex and can be confusing. The amount of excludable capital gains varies based on whether you and your spouse sell together or whether you continue to co-own the home but sell later.
The decision of what to do with your home and other significant property is a key component of your divorce, and it’s important to consider the potential effects of the capital gains tax. For additional information, please see our Selling Your Home During a Divorce page.
If you’re considering divorce or are faced with divorce, please contact the Law Offices of Anthony Carbone to arrange your consultation and learn how Mr. Carbone can help protect your rights and guide you through this difficult process. Mr. Carbone welcomes clients from the greater Jersey City and Newark, New Jersey, areas.