At Sweeney Law Offices, LLC, we are committed to maintaining the highest level of client care while balancing the health and safety of our clients. Per the various orders of the Governor of Pennsylvania and Pennsylvania Supreme Court, until April 30, 2020, Sweeney Law Offices, LLC will remain open remotely, we will be available to communicate with clients via telephone and, if necessary, video calls. We will have regular access to email, fax and U.S. Mail. Although our office location will be generally closed to the public, we have set up a drop box outside of our door, which will be checked daily, so that clients who do not have access to email or facsimile can continue to provide important documents to our office. Please note that we will also continue to accommodate the needs of new clients, who are welcome, and as always we encourage and appreciate referrals. During this uncertain and unprecedented time, please stay safe and remember that Sweeney Law Offices, LLC will remain by your side for all of your family’s legal needs.

Let Our Family Help Your Family

Tax considerations and complex property division in Pennsylvania

Many issues need to be resolved before a divorce can be considered final. One issue that Pennsylvania couples may not consider during the divorce is the tax ramifications of complex property division. Some of the major assets that are divided in a divorce have tax issues that can cause problems later if not contemplated and accounted for during settlement negotiations.

The goal of property division in a divorce is an equitable division of a couple’s property. However, what may seem equitable on paper could end up not being fair at tax time. For instance, when an asset that appreciates is sold, capital gains tax may be due. This will effectively lower the value of that asset. Therefore, when one party gets the house and the other gets cash, it may be a good idea to consider these tax issues first.

Transferring retirement accounts can be particularly tricky when it comes to taxes. These accounts can be transferred without tax ramifications, but there may be additional requirements to follow in order to avoid being taxed while the other spouse gets the benefits. It may take some research to be sure the tax implications associated with these assets are handled in a manner that makes any transfers as even-handed as possible.

It is easy to forget the tax implications that can accompany complex property division. Most Pennsylvania couples are just trying to get through the process as smoothly and quickly as they can. Even though tax issues may not come up for months, they are an important part of the negotiations of a divorce settlement to ensure both parties are able to walk away feeling they were treated fairly and equitably.

Source:, What’s even worse than divorce? The taxes, Bill Bischoff, Dec. 3, 2013


FindLaw Network