I'm interested in learning the basics of divorce planning.

The basic facts of the situation are following.  I'm more interested in learning what resources for guidance and learning you recommend. But, if you like, feel free to comment on this situation.

 

Spouse keeps the house and the business (C Corp). Spouse will purchase TP out of these by giving TP a sum of $100k upfront and $8k/mo. for 10 years. Spouse will assume the financial responsibility for kids. 

 

Some tax issues that come to my mind:

1.  Spouse and TP are the only owners and receive salaries. TP could have taxable gain on sale of stock to Spouse.  Installment sale?

2. Is it beneficial for TP to sell 50% ownership?  Is it advised that both remain owners?

3. Can the payments of 8k be structured to allow the business a tax deduction? I think the TP would need to provide services to the corporation.

4.  Home sale in 2024 is likely by Spouse in order to fund payments. Sale would likely have 1/2 M taxable gain at a 20% rate.

 

Anyway, there are lots of moving pieces, which means opportunities for tax planning. And both parties are talking so that is a positive.

 

 

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