When a Florida couple seeks a divorce, they may become involved in property division proceedings that might become complicated, depending on certain factors. However, a recent article discusses some basics of the process that might be beneficial to some readers.
One major point of contention during a divorce can be a couple’s home. There are certain things that the involved parties might need to consider when determining ownership of the property after the divorce is made official. For example, if the couple decides to sell the home together, they might be able to qualify for a $500,000 tax break on capital gains. However, if the home is only owned by one person, that exclusion is cut down to $250,000. In addition, generally, if the transfer of ownership from both spouses to one spouse occurs within one year of the divorce, the transaction is considered a gift and may be made without incurring additional taxes.
Some couples might also need to divide retirement accounts. Often, the involved parties might seek a qualified domestic relations order, which could help divide the asset without incurring an early withdrawal penalty. However, QDROs cannot be used on individual retirement accounts, which are generally divided according to state law.
Regulations concerning the division of IRAs and other assets varies between states and can be difficult to understand. However, an attorney who is familiar with family law could provide a client with advice and guidance concerning the property division process. That attorney might also represent a client in negotiations and hearings throughout proceedings.
Source: NerdWallet, “Divorce: Making Sense of the Confusion“, J. Kevin Stophel, June 03, 2014