Executive Divorce Tip 9 Tax Consequences

Tip 9  Identify tax consequences on assets and fringe benefits.

It used to be that known tax consequences could not be taken into consideration when dividing assets in a divorce. Fortunately, the Texas Legislature recently changed that rule, and tax consequences are relevant. For instance, $1 million in cash is not the same as $1 million in a 401k. Thus, they are no longer treated equally in a property division because of the tax consequences.