Any CPA Kissimmee will tell you that as harsh as the reality is and as bleak as the future may appear to be, one thing couples are often challenged with when getting divorced is a structured distribution of their estate. Since emotions are expected to run high at these moments, it is best to hire an CPA Kissimmee to act through on their behalf for financial settlements.
This is because there are no rules to provide one with any guidance as to how their assets are divided upon separation. The Court gets to decide that one according to individual cases, considering the ages, earning capabilities, the needs (both present and future), the contribution they have made to the marriage, and the interests of children. A CPA Kissimmee knows that there is the Working Families Tax Credit that has to be sorted out, an even more pressing issue is that of the capital assets of the marriage, the timing of whose transfer plays a major role in tax implications.
A CPA Kissimmee will be able to make sure there aren’t any surprises post-divorce, especially if those mistakes in the division can be interpreted as fraud and not be undone. They can be the neutral party who can utilize useful information to make the process as smooth as possible and get it processed early.
CPA Kissimmee Duties
A CPA Kissimmee as a tax advisor may have possibly been representing both spouses prior to their divorce. Now that each of them are liable to have competing interests, the CPA Kissimmee must take up a practice with either family member and prepare a new engagement letter or be responsible for a conflict-of-interest release.
The CPA Kissimmee will also advise that any property that the spouses obtained while their marriage was intact will be treated as marital property. These can include the family home. The division of the property (with the exception of the retirement plan assets) depends upon whether the divorce has taken place in a community property state or an equitable distribution state.
The house is usually the most substantial benefit a couple has but there are other forms too like the life insurance policies, cars, and bank accounts. If there are no children involved, the CPA Kissimmee will consult that the aim is usually to settle for a “clean break”. However, that is not possible always. One may still need a capital initially to meet their requirements and it may be necessary to sell some assets or, in case that’s not easy, to transfer others of the same value to the respective person.
When the parties involved cannot reach an agreement regarding the assessment of their assets’ value, often when one of them own a business, they need some kind of detective work, “forensic accounting” to be exact. This would require the CPA Kissimmee, for example, to trace hidden assets, determine what the assets are actually, and evaluate the effect division of pension and earnings can have. They can also formulate a tax efficient way to pay for maintenance. Besides this, they will be working to save legal time by gathering and organizing financial data, clear any inconsistencies that they discover, prepare expense analysis, identify marital credits and reimbursements, and analyze current and post-divorce investments. For small businesses, they may have to trace ownership and help their attorneys understand the contractual obligations of the company along with its shareholders.
If you need more information about our Kissimmee, FL accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, Hunters Creek, Lake Nona, Celebration, Winter Park, Windermere, Dr. Phillips, Maitland, Altamonte Springs, Winter Garden, Ocoee, Apopka, Belle Isle, Edgewood, and Oakland FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin number, incorporations, and non profit 501c3 tax exempt. (Freedomtax’s accounting professionals are NOT CPA’s. CPA services provided by third party provider.)