Married couples that have significant assets usually create tax shelters, either in the U.S. or overseas. Tax shelters are any method of reducing taxable income resulting in a reduction of the payments to tax-collecting entities, including state and federal governments. They can range from investments or investment accounts to offshore companies. However, in the midst of a divorce, the value of the investment needs to be characterized as either separate or marital property. This can cause the divorce process to be a little more complex.
In some cases, one individual may have brought significant financial worth into the marriage and in this case, the tax shelter may have been established and is usually protected by a prenuptial or postnuptial agreement. It is the cases, however, when the parties don’t sign an agreement that makes this a more complex matter. Any assets that are additions to the original investment or used to enhance the shelter during the course of the marriage are considered commingled assets – or transmutation of assets – and will be characterized as marital property. This includes the following: current and future appreciation of the investment, and tax savings realized from the shelter.
Protect Your Property. Contact Our Lawyers in Missouri, Illinois, Oklahoma, Nebraska, and Kansas
At Stange Law Firm, PC, we will look at all facts and aspects of the case and thoroughly go through each investment to determine whether it should be classified as separate or marital property. We have lawyers on hand with the experience and the knowledge to help you with your tax shelter during your divorce.
If you are an individual with a high net worth and are seeking to protect the status of your tax shelter in your settlement, contact Stange Law Firm, PC today to schedule a confidential consultation. You can contact us online or by calling one of our convenient locations. We have locations in St. Louis, Kansas City, Columbia, Springfield, Wichita, Tulsa, Chicago, Lincoln, and beyond.