I am going through the divorce process and it will be final October 25th 2012, we have used a mediator for the process. Our house is on the market and if sold we each will get about $108,000 out of the property. Will I have to pay Capital Gains tax on this? Do I have to invest the full amount into another property? I am 50 years old and the mediator did not have aan answer for me. Thank You
Divorce / Separation Lawyer
You should consult with an accountant as there are other factors that also need to be considered. Additionally, prior to finalizing a divorce that you settled through mediation, you should always seek the advice of an independent attorney. Keep in mind that mediation is a great process, but it is conducted by a neutral third party and thus, your best interests are not taken into consideration. Dissolution agreements entered after the mediation process are not always completely comprehensive and it's better to address concerns prior to the dissolution rather than later on when you would have to go back to court for a post-judgment issue.
Please keep in mind this is just a general suggestion and each individual matter has a specific set of facts and circumstances that should be taken into consideration. This is in no way legal advice and no attorney-client relationship has been formed. If you would like to discuss your matter further, you may contact us at firstname.lastname@example.org or 203.745.3151. We wish you the best of luck with your matter.
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Chapter 7 Bankruptcy Attorney
Vital facts to find out here is how much you paid for the property when you bought, how much you paid for repairs you made to the property while you owned it and what costs you had in selling it. The profit you must recognize is only the sales price less the sum of all of the above.
This answer does not create an attorney-client relationship.