London, UK.
This is not exactly about alimony but there was no other forum on finance and divorce.
My wife and I are divorcing. I am an American citizen living in London, she is German. Upon divorce I will repatriate, probably to Colorado. I will likely get a six-figure, maybe seven, settlement. My question is how will that be taxed when it is transferred to an American bank? For now let's just say it's a cash lump sum.
Is it called "income"? - like any employment?
I know different kinds of assets are taxed differently, but if it is just cash, how is that taxed?
Should it be broken down and spread out in some way?
What can I do to minimize taxes as much as possible?
I know taxes are taxes but I haven't even lived in the US in three years, I don't really want to hand over half to the IRS.
thx
This is not exactly about alimony but there was no other forum on finance and divorce.
My wife and I are divorcing. I am an American citizen living in London, she is German. Upon divorce I will repatriate, probably to Colorado. I will likely get a six-figure, maybe seven, settlement. My question is how will that be taxed when it is transferred to an American bank? For now let's just say it's a cash lump sum.
Is it called "income"? - like any employment?
I know different kinds of assets are taxed differently, but if it is just cash, how is that taxed?
Should it be broken down and spread out in some way?
What can I do to minimize taxes as much as possible?
I know taxes are taxes but I haven't even lived in the US in three years, I don't really want to hand over half to the IRS.
thx