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The Virtues of a Debt Relief Lawyer 12 Months After Divorce

A divorce is scary, financially frustrating, and life-changing. Recently divorced couples often soon face mounting debt due to these rapid changes in their life and situation. Taxes must be paid, but there are certain ways this can be worked in an organized to make sure someone is not financially ruined by back taxes.

Tax Relief After Divorce

There comes a time when the tax relief service may be the best option. Divorce with children almost always accompanies some kind of child support payment, and this must be paid timely and reasonably for the emotional state of the children and, of course, the law. So taxes sometimes takes a back-seat to the need to pay child support and to survive. So how does one manage the repayments of taxes in the years following a divorce?

Tax On Capital Gains and the Future

Many people find a situation where they need tax relief following a divorce because they did not properly allocate funds for tax payment. One of the more troubling areas is capital gains. Capital gains is the amount earned back through an investment. So the share was bought for a dollar and sold for $10 (or could be sold). Taxes need to be paid on that increase of nine dollars. A divorced individual may feel they have plenty of money to work with after divorce, and they buy out a lot of their stocks and cash in on those capital gains. But they need to pay taxes on these amounts which could be astoundingly high if there were substantial gains.

If these funds were then used to pay child support, find a new home, and generally deal with the aftermath of the divorce, there may be none left over for taxes. Anything proceeding in a divorce settlement could have capital gains attached to it, such as a home asset or a mutual fund account.

The frustrating thing is that many people do not pay these immediately upon receiving the funds, and push it off to another year or two. This could come back to bite them, making a Debt Relief Lawyer a much needed team member.

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