No abuse of discretion in refusing to consider the theoretical tax consequences of sale of corporation where sale is neither necessary nor probable. However, where award of property is a taxable event, capital gains consequences must be considered.
Failure of a trial court to consider tax consequences may constitute an abuse of discretion.
Trial court improperly considered capital gains tax in determining the sale of real estate and a building owned by service corporation. Nothing in record supports that a sale is imminent.
Reduction of pension for taxes by 25% affirmed. Future taxes clearly impact on the present value of retirement plans.
Reduction of stock portfolio for taxes was reasonable, as evidence supported a finding that stocks would probably be sold, as husband would be unable to make property division payments out of earned income.
Where the parties did not present the trial court with any evidence or other reliable data as to the tax consequences of the court’s decision, the court does not abuse its discretion in failing to take those consequences into consideration.
Trial court’s refusal to take into consideration tax consequences of sale of stock in closely held corporation is affirmed as there is no evidence in the record that any sale of the business is imminent.
No error by not considering potential tax consequences of sale of family farm as wife testified that she has no plans to sell the farm. Evidence does not show that a sale is probable or imminent.
Court did not need expert testimony to reduce value of pension by twenty percent. In absence of an expert, the court can use its own knowledge and experience to engage in reasonable speculation regarding anticipate tax impact.
The court did not have to consider the tax consequences of husband’s withdrawal from his IRA to make the equalization payment since it was anticipated that he would sell or refinance the homestead. Husband’s choice to raise funds through a method which resulted in a penalty is his erroneous exercise of discretion, not the court’s.