Section 4.21 Tax Consequences and Estate Planning

• Library: Family Law Deskbook and 2014 Supp

F. (§4.21) Tax Consequences and Estate Planning

Antenuptial and postnuptial agreements typically relate to estate planning wishes, the purchase and sale of real estate and other property, and the characterization of income (wages, rents, dividends, interest, etc.). Thus, there may be estate, gift, and income tax consequences. It is essential that the potential tax consequences and impact of any antenuptial or postnuptial agreement be considered and analyzed.

While dissolution courts have generally held that unrealized capital gains will not be considered in the valuation and division of marital property unless recognition of capital gains is imminent, it may be advisable to consider whether or not unrealized capital gains should be included as part of the value of marital property to be divided. While this does not yet appear to be a common practice, caution...