By: Vern Hoven

eTax Alert: Tax Ramifications of Divorce

In a divorce, if the division of the marital assets is a non- taxable event. The problem is when it says it's a not-taxable event, it's treated like a gift. Most certainly it isn't a gift. They like each other and so when we're talking about a divisional marital asset is treated like a gift that means that the basis goes with whoever gets the property. It's not a sale. It's a gift. Why could we have a problem with this? What happens if we have two assets?

Read this article