Other assets containing latent tax liabilities are tax qualified IRAs, Keoghs, 401(k)s, 403(b)s, 457s as well as profit sharing plans, mutual fund shares, stocks and any investments that have appreciated over time.

See also Capital Gains.

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1. Assets Without Latent Capital Gains Liabilities
   On the other hand, assets without latent capital gain liabilities include cash, certificates of deposit, treasury bills, deposit accounts, life insurance cash values, bonds, some portion of some annuities.
   Contributed on 7/6/2007 by: DivorceDex.com Staff

   Category: Tax Consequences  (Applicable in All States)
2. The Marital Home and the Divorcing Woman
   Very often in divorce, women end up with the family house. The appeal of the homestead is self-evident; however, the latent tax exposure is yet another reason to throw a cold eye of the arrangement. Remember, a house is a barren asset that pays nothing until it is sold. Even this ignores maintenance and property taxes. For a single woman struggling to keep her head above water, the tax exposure on the homestead warrants a second thought about keeping the house. That so called American Dream -- home ownership -- can become what one divorce lawyer calls a minefield affecting one spouse "unfairly and unexpectedly" when the total costs are calculated.
   Contributed on 7/6/2007 by: DivorceDex.com Staff

   Category: Tax Consequences  (Applicable in All States)

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