Will I pay taxes on assets received from my spouse post-separation? No. Spouses are permitted to transfer property, incident to divorce, without recognizing and reporting a loss or gain. Regardless of what this transfer is called (gift, sale, exchange, etc.) the rule will protect the spouses from incurring a tax penalty by transferring property.
Generally a provision will be included in the legal document discussing the transfer, stating that any transfer will in fact be tax-free. However, even if transfers occur with no legal document in place, there is often a presumption that the transfer was “incident to divorce” and therefore is free of tax consequences.
For more information on post-separation taxes, contact us or call us at (919) 787-6668.
Lee is the founder of Rosen Law Firm and, while retired, still lives on through this website, a huge repository of information to help educate people about family law. It demystifies the divorce process, sharing the secrets and information that other lawyers normally try to keep hidden. Today, this website contains a vast assortment of webinars, legal forms, statutes, Q&As with lawyers, audio and video courses, articles, and lots more.
