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Residents and business owners of Ohio should be aware of this recent article regarding those of high net worth who are going through a divorce. Tax issues involving the business entities should not be overlooked, as divorce is happening. The couple’s assets and business entities should be considered.

According to Bloomberg Tax, although some tax issues have been address, such as the elimination of the alimony deduction after 2018, others regarding the assets and business entities of the couple are often overlooked. These are some other issues to consider.

Should there be more comprehensive tax indemnification provisions relating to the business? Well-written language is important in the resolution of tax issues that can arise after the divorce. Couples may wish for a clean break, but this is not always possible when taxes are involved.

The former spouse, who is left after ownership of the business is passed to the other member of the couple, needs protection. Complicated issues arise if an audit is begun, and a lawyer may be necessary to iron out the complexities.

Commonly utilized by high-net worth couples, a popular estate planning and asset protection vehicle is the family limited partnership (FLP). This typically holds real estate or investments in other companies as well as various marital assets. It also includes ownership interests in business entities.

An attorney who is versed in tax law as well as divorce can be very helpful when a marital estate is divided. Surprises and misunderstandings may occur, and the help of a knowledgeable attorney during the divorce may be required. Property and valuable assets may create conflict in people of high net worth. An attorney who understands the complexities of high-asset divorce is important in the resolution of these issues. Trusts may also be involved as well as high-value collections that could include artwork.