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Military families struggle with finances "Another example: Most states do not allow a court to 'tax effect' retirement accounts such as pension plans or IRAs," Marcyan said.
"In a collaborative setting, the parties could tax-effect all assets, whether retirement or otherwise, so that asset values are all after tax, and therefore the final result would be fairer to both sides of the case." In addition, courts usually require substantial evidence to establish that any nonmarital asset, such as property brought into the marriage or obtained through gift or inheritance, qualifies as nonmarital, he added.
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"It's much more important to negotiate than go to court.If you must liquidate assets, do it within a negotiated, mediated perspective," Black said. equitable distribution Nine states divide property according to community property law, while the rest apply equitable distribution principles.They are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.And because transferring assets between spouses is a nontaxable event, it becomes a great motivator to trade assets back and forth, according to Black."Tax considerations must be taken into account, including whether the transaction is taxed at ordinary or capital gains rates," he said.