Massachusetts Divorce Law...

Massachusetts Law - May the Court Consider Tax Issues.

The court may consider tax issues both in setting spousal maintenance and in dividing the property.

The tax issues that arise most frequently are:

• Tax that would be paid if securities or mutual funds were sold.
• Tax that would be paid if the family home were sold.
• The deductibility of alimony to the payer and inclusion in income of the recipient.
• The non-deductibility of child support and non-inclusion in income of the recipient.
• The income tax exemption for a child, which sometimes may be given to either parent.

However, the parties must bring up the issues. The court will not take it upon itself to examine them.

Cases:

Fechtor (1989) 534 NE2d 1 (The court stated that a judge should try to divide property so as to minimize taxes. In this case, award did not force the husband to sell his brokerage business -- and realize capital gains -- so the tax factors were adequately considered.)

Bennett (1983) 448 NE2d 77 (The court stated that any tax issues must be raised by the parties. The court will not consider the tax consequences on its own motion.)

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