psriniva[at]yahoo.com wrote:
- quote -

Sorry for any confusion, let me clarify. The house had an economic
value that was undeniably far in excess of the nominal $10 dollars that
went on the bill of sale (or whatever). Because it was a "lump sum
transfer or payment" pursuant to a divorce settlement agreement, it was
a non-taxable event - regardless of the real economic or nominal stated
value.

That was in my divorce. The attorney who drew up your settlement
agreement is the person to ask. (We may guess right here on Google, but
a licensed attorney, in your State, will want to see specifics before
answering.)

What follows is just some background assumption. As far as I know: one
may transfer, without tax consequences, any amounts to a spouse; these
are "inter-spousal transfers". I assume you could transfer back and
forth between spouses just for the heck of it, if you wanted to.
However, your question hinges on your settlement agreement, not
necessarily on transfers between spouses. I am guessing that the legal
basis underlying lump-sum payments hinges on the idea that these are
made prior to divorce, and are thus deemed inter-spousal transfers.
But, I am also guessing that the settlement agreement may have to
include some provision for distribution of financial assets in it - and
I don't know about that at all.

The reason for asking an attorney is, for example, the complete
nullification of what I have said in general, in the event that one or
both spouses had a second spouse. In that event, I assume the later of
the marriages would be void, and if the second party to that second
marriage were the second party to the divorce, and transfers were
involved, those transfers might then be deemed taxable events, whether
those were made contingent to the divorce or not. But if the second
party to the earlier of the marriages were the second party to the
divorce, then it's different, and it seems transfers made either before
or contingent to divorce would be non-taxable. Unless of course some of
the amounts transferred were property brought into the second marriage
by the second party to that marriage, or were the result of gainful
effort on their part, in which instance those might be taxable
transfers since they were never married to the second party of the
first marriage. That is, the second party to the second marriage party
presumably never attended the party attendant to the marriage of the
second party to the first party. See?

Hi,

Thanks very much for responding to my queries.
What is this $10 "lump sum' sale of house that you are talking about?
I am wondering if I have to something like that to avoid taxes.
I was hoping that I could draw up a new deed indicating just one name
as the owner instead of 2 names.

Thanks

Paddy
dapperdobbs wrote:
- quote -

psriniva[at]yahoo.com wrote:
- quote -

Sorry to hear of your divorce, but congratulations on working out an
amicable settlement.

Laws vary from state to state, but as far as I know, there are no taxes
due on "lump sum" transfers of funds pursuant to a divorce. Having just
done a divorce that was far from amicable, I'm not in the mood to check
the IRS regulations, but I know my lump-sum, house for sale $10 (ten
dollars), had no tax consequences.

Hi,

1. We have a couple of brokerage accounts. These brokerage accounts
are owned as "Joint with rights of survivorship".
Now we have to change one of these brokerage accounts to just my name
(Individual account) and the other to just my wife's name (Individual
account).
Do we need to pay taxes on these transfers?
As far as we are concerned, we are not selling any assets in the
account. The assets are being journaled into new Individual accounts.

Your help is appreciated.

2. We have 2 one bedroom condos. Both are completely paid for.
We have agreed that one will go to her. Other will go to me. One
condo is more valuable than the other. So, the spouse that is getting
the less valued condo will get some other assets to make up for the
difference.
Here is my question. Names of both spouses are in the deeds of both
condos. Now we have to draw up new deeds with only one name on each.
Do we have to pay transfer taxes. We are about to sign the separation
agreement.

Thanks

P