Tax consequences should always be considered as central to any financial decision in a divorce action. Yet, they are sometimes an afterthought of attorneys and parties who are aggressively seeking settlement of other key issues.
Parties often make choices which have considerable tax implications before they even see a divorce attorney to "formalize" the termination of their marriage. While the agreed resolution of the financial issues in the divorce case may appear fair on the surface, it may be far from fair once tax implications are factored in.