Good morning, community,
My client is expecting 33k in a divorce settlement that reflects the equity in the house. Just doublechecking if there is any taxable consequence that might be difference because it is a settlement rather than a sale.
Hope everyone is staying cool, and looking forward to a great weekend,
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The division of marital assets is (generally) NOT a taxable transaction. Splitting the equity in a home isn't taxable.
Be sure, if there are any retirement plans, that the split is handled correctly via QDROs - some attorneys aren't savvy regarding these.
Also, standing six feet away for safety purposes. 😉
Relieved to hear about the home equity. Are there any conditions, such as must the dollars must be reinvested into another residence?
Good note about the QDROS, have one of those going on right now, and you are so right about the reality of attorneys who are not savvy about them.