Marital assets and taxes: What about capital gains?

Imagine you’re in the midst of the asset division process during your divorce. You want to keep the $1 million family home and your spouse wants to keep the $1 million investment portfolio. Both are worth the same amount of money so it should be a simple process of you keeping the house, and your spouse keeping the investment portfolio — right?

Not necessarily. Capital gains taxes could apply to either the investment portfolio, the house, or, likely, both. You’ll need to consider the amount of these tax liabilities when you’re dividing your home.

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