Divorce And Your Money - #1 Divorce Podcast

This episode discusses the concept of a capital loss carryover. You might not be familiar with this important term. If you have a capital loss carryover, it is a valuable asset that needs to be treated as such in your divorce.   What is a capital loss carryover? You may be familiar with capital gains. A capital loss is exactly the opposite. When you make an investment in a house, a stock, or a bond, you expect to make money on it. However, all investments have risk, so sometimes, they decrease in value. When you sell an investment for less than what you paid, you have a capital loss.   In previous episodes, we have discussed paying capital gains taxes when you make money on an investment. In contrast, a capital loss allows you to write off future taxes, which is called a capital loss carryover.   Here is an example with simple numbers: You have an investment, and you lost $100 when you sold it. A couple of years go by, and you have a different investment that has a gain of $30. Normally, you would have to pay