How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask linda_us Your Own Question
linda_us, Master's Degree
Category: Multiple Problems
Satisfied Customers: 1402
Experience:  A tutor for Business, Finance, Accounts and other related topics.
Type Your Multiple Problems Question Here...
linda_us is online now
A new question is answered every 9 seconds

Alice and Bob intend to divorce and are in the process of first

Customer Question

Alice and Bob intend to divorce and are in the process of first signing a Marital Settlement Agreement at the end of which they would have separated all assets. The divorce itself can be completed either immediately or after the end of the year should it be beneficial to file taxes jointly.
An added factor is that both intend to move back to CA from FL where they are currently resident. They moved to FL from CA between 2010-2012. Bob moved first, and Alice followed (the delay was due to the time it took to sell their CA home). They have since been, and still are FL residents.
Relevant financial facts:
- They have joint returns since 1990 (they were married in 1989). And currently have $CFLT in carry forward long term losses that occurred in 2010. (they also have $CFST short term losses; but that is less relevant as they expect to split that 50:50 as it all happened in a joint brokerage acct.). The $CFLT resulted from losses incurred by Bob.
- In 2011 Bob sold some intellectual property to ABC INC. in exchange for equity. In April 2015 ABC INC. was acquired resulting in Bob getting a check for $GAIN1, and $ESCR in escrow payments to be made 15-18 months later.
- They own two condos in FL, both of which Alice will retain wholly as part of the Settlement. She intends to sell them ASAP and is likely to get $GAIN2.
Question 1: If they wait until Jan 2, 2016 for the divorce and file joint returns it appears they would simply use $CFLT to offset all of $GAIN. If they divorce and file separately can Bob use $CFLT to offset $GAIN? Can they as part of their Marital Separation Agreement, agree on a division of the $CFLT? i.e. specify that it's all Bob's or that they are going to share it in a certain ratio?
Question 2: If they move to California, (Alice to San Diego, and Bob to Bay Area), say in July or later the year, and CA becomes their primary residence, can CA claim they owe taxes on:
a) $GAIN1 which occurred in March of this year (they were and are still FL residents).
b) $GAIN2 which is likely to occur after their residency changes to $GAIN2.
The separation, settlement and divorce are amicable and both parties would like to cooperate to maximize their mutual benefit. Most of the asset were divided in favor of Alice (70:30), in lieu of alimony, and Bob wished it to be that way.
Submitted: 2 years ago.
Category: Multiple Problems
Expert:  Mr. Gregory White replied 2 years ago.
Hello, my name is Greg.
I see this might be time sensitive.
Do you still need this answered?
Customer: replied 2 years ago.
Yes indeed! I never got a response to my yahoo email until your last email. I will check back on both mail and this site. This is time sensitive. Appreciate your help.

Related Multiple Problems Questions