Distribution of Tax Benefits and Liabilities
In dissolution cases, many of the assets that are distributed have embedded tax liabilities or benefits that need to be identified and considered as part of the overall case strategy, whether the case is on a settlement or a trial path. The embedded taxes can take many forms and, if they are not considered, the division of marital assets could be implemented in a way that is inefficient and/or unfair.
Due to the importance of the tax considerations in high net worth divorces, the attorneys at Fisher Potter Hodas, PLLC, have written scholarly articles identifying and explaining these issues for practitioners. For example, in 2014, attorneys Jeffrey Fisher and Zachary Potter, along with Professor Gregg Polsky (the Willie Person Mangum Professor of Law at the University of North Carolina School of Law), published an article in the Florida Bar Journal entitled, "Tax Consequences of Distributing Equity Compensation Rights in Divorce." Prior to that, in 2010, Jeffrey Fisher, along with his former partner Odette Bendeck, published an article entitled, "Beyond the Imminent Sale Doctrine: Valuing Assets with Embedded Tax Consequences."