Divorce affects not only your family and property; it can trigger hammer blows from the federal government’s tax system.

Imagine giving business property to your ex, who collects the cash and, upon that collection, you pay the taxes. That’s a nice double whammy, made far worse when you receive the hammer without expecting it.

The hammer does not have to arrive because of your business. Children, property, and other situations can bring the hammer too.

There are more than enough hammers to go around. In fact, so many that we have to divide the tax issues related to divorce into several articles.

Start with State Law—It’s the Key

In divorce, state law generally defines how you and your ex are going to divide the assets.

In this country, your assets are located in one of two types of states:

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