Same Sex Marriages Have Repercussions And Economic Advantages No One Is Talking About

wedding flowers
wedding flowers

When Warren Buffet Marries George Soros They both save taxes.

Same sex marriage is a legal contract with major economic repercussions. Attorneys are going to find that they can use same sex marriage to combine the assets of well to do individuals in order to transfer property without transfer taxes and with no capital gains taxes. It will be a win win contract for say Warren Buffet to divorce his present wife and Marry a recently divorced George Soros. For a few months they can combine their assets and then get divorced dividing up all the assets facilitating a transfer of property incurring no capital gains taxes or other transfer taxes. The same sex marriage is going to end up becoming a major loop hole for facilitating mergers and acquisitions with far lower tax consequences than otherwise incurred , It already works for non same sex partners but now it can work for men and men and women and women. An attorney is probably required because before such a marriage occurs each party is going to want to abide by a pre-nuptial agreement that defines the conditions of the impending divorce in every minute detail including which joint or community property goes to whom and when.

Say a billionaire has ten billion dollars in assets that he wants to sell to another billionaire for ten billion dollars cash but he does not want to sell the assets and incur a capital gains tax on an asset that has appreciated 900 percent. All he has to do is marry the other billionaire guy with the ten billion dollars. Together as a married couple they have 20 billion dollars or more. When they get a divorce they spit the property in a pre determined way with the one getting 10 billion dollars in cash tax free and the other getting the company with no transaction costs except for the attorney fees.

That is certainly not the only tax advantage for men to marry men and women women. Real estate transactions have multiple reasons for these kinds of legal contract combinations. It also allows estates and inheritances and insurance policy benefits to get new ownership. There are real dynamic possibilities. If someone needs free health insurance they can just get married with no other purpose other than to become the spouse on a health or life insurance policy. To avoid Estate taxes just have a living spouse. Maybe you state will allow a second cousin to marry a second cousin or even an uncle to keep a business in the family and provide for tax free consideration at the same time. It will be interesting to watch what the lawyers think of in the near future.


Comments

No comments yet.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working