Maria Shriver Terminates Marriage
After Arnold Schwarzenegger admitted to fathering a lovechild with his family’s former maid, the world has been abuzz over the dirty laundry between him and Maria Shriver.
It wasn’t long until Maria pulled the trigger to terminate their marriage of 25 years. Sick of Arnold’s true lies, it was only a matter of weeks until Maria gave their marriage a total recall.
Now comes the messy part: the distribution of the couple’s assets. And, in a community property state like California, that means a big pay day for one and a lot of collateral damage for the other. Estimates for Arnold’s fortune range from $300 to $750 million, while Maria’s is estimated somewhere near $100 million. It’s the end of days for a sizable chunk of Arnold’s personal wealth, as Maria Shriver could gain as much as $325 million!
A deal like that will likely be sealed with a good amount of legal bills from tax attorneys. If Maria gains any property from Arnold, such as homes or investment properties, she’ll avoid having to pay taxes on the transfer. But, she won’t avoid the taxman altogether: she’ll have to pay capital gains tax once she sells it.
If she receives alimony, she’ll have to pay income tax (unlike child support, which is tax-exempt). On the plus side for Arnold, he can take a tax deduction for the payments, but the IRS will only recognize the payments if they’re spelled out in their divorce agreement.
If you’re looking to terminate the tax debt you owe the IRS, your best bet is to hire a tax attorney. And while you probably won’t owe as much as Arnold will owe Maria, it’s a good idea to resolve it before penalties and interest pump it up any further.
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