Cross-Border Marriages Are Rising Along with Legal Hassles

In 2010, nearly five million Americans were married tosomeone born in a different country, a rising trend also found in a number ofother countries.

International tax and estate planning issues coincide withthis trend.  Some common issues includeincreased taxes, different tax rules, restrictions on property ownership, andinheritance cuts. 

One of the biggest issues in America is the unlimitedmarital-deduction privilege, which allows U.S. citizen spouses to transfer eachother money tax-free.  However, if aspouse is a citizen of another country, this could trigger a steep federalestate tax, which in some cases can reach nearly 40 percent.

Cross-border couples must also be aware of the increaseddifficulties that arise upon divorce, including the enforcement of childcustody and calculating the correct tax deductions for spousal and childsupport.

See Neil Parmar, A Global Love Affair, The Wall StreetJournal, May 21, 2013.