I would encourage anyone involved in a divorce to have their CPA involved in the divorce negotiations. Our recent article about the divorce process includes 8 tax factors to be considered. These are good factors to be aware of and they are seldom included in a divorce decree.
It is important to have a CPA during tax negotiations because these factors are not obvious, and they are indirectly related to the items in your spouse’s financial assets. For example, who would think to examine a list of vendors for proper Form 1099-MISC documentation? I’ll tell you who… a good CPA who is familiar with divorce proceedings.
The amount and the number of the assets involved will determine what is at stake. Our advice is to consider the list of financial assets as a starting point and tell your attorney you’d like to have your CPA do a review from a tax and financial perspective.