The complexity and differences between the community property statutes of the nine mostly western states* that have adopted them have created a tax consulting and preparation quagmire that can intimidate even the most knowledgeable accountants and attorneys. We will begin by addressing some basic Federal tax implications, and follow up in future posts with valuation issues.
Property
Definition: “Generally, community property is property that you, your spouse (or your registered domestic partner), or both acquire during your marriage (or registered domestic partnership) while you and your spouse (or registered domestic partner) are domiciled in a community property state”. IRS Publication 555.
Continue reading “Marital Dissolution in Community Property States”