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Should the court take tax consequences into account when dividing the property?

Courts should and do take into account anticipated tax consequences. For example, you may end up paying a large capital gains tax, the court may give you more marital property, in order to make up for that loss of money in capital gains tax.

On the other hand, it is possible that you may receive a tax benefit when the property is divided. In that case, the court may award you a less property, since you have been awarded a tax benefit.

Taxes play a very significant role throughout divorce. Often the tax consequences are overlooked and end up being very detrimental financially to one of the spouses. If you and/or your attorney do not understand the tax consequences of a property settlement, it is recommended that you consult a financial planner.