What is a marital deduction?

A marital deduction is a tax break that is granted by the state of Virginia to married couples. This deduction allows them to pass property, assets, and other financial holdings between each other without having to pay taxes on those items. This deduction is especially beneficial to those couples who are divorcing, as they are allowed to transfer assets to each other in a tax-free manner. The marital deduction is only applicable if the couple is actually filing for a divorce in Virginia. Those who are separating but not divorcing will not be able to take advantage of this deduction. In order to qualify for the deduction, the couple must have been legally married at the time of the transfer. The assets transferred through the marital deduction must also remain in the spouses’ names and cannot be transferred to a third party. The marital deduction can save married couples in Virginia hundreds or even thousands of dollars when filing for divorce. It is important to note that this deduction is not applied to other taxes besides the state income tax. Additionally, the deductibles that are available for the marital deduction vary depending on the circumstances of the marriage. It is always important to seek professional advice and assistance when filing for a divorce in Virginia in order to ensure that you are taking full advantage of any and all deductions available.

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