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My wife and I are going through our divorce settlement. If my wife is supposed to receive a large portion of money through our divorce settlement, will that money be taxed?
9 ANSWERS
Domestic Relations Attorney serving Omaha, NE
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Diane L. Berger
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That would be a no.
Answered on Aug 27th, 2015 at 10:46 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Probably not. Usually large settlements in divorce is splitting up the property. Those payments are not taxable. Only alimony payments are taxable to the recipient and deductible to the payor.
Answered on Jun 05th, 2015 at 5:23 AM
Personal Injury Law Attorney serving San Diego, CA
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Law Office of Robert Burns
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It depends. Ask her attorney.
Answered on Jun 04th, 2015 at 7:02 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Usually she will not be taxed at the time of the transfer. However, there are exceptions to every rule, especially in tax law. So consult an experienced tax lawyer or CPA.
Answered on Jun 04th, 2015 at 5:02 PM
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It depends. If it is characterized as alimony, then yes, it is taxable.
Answered on Jun 04th, 2015 at 5:00 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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No income; no deduction.
Answered on Jun 04th, 2015 at 2:09 PM
Dispute Resolution Attorney serving Seattle, WA
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Law Offices of Helene Ellenbogen P.S.
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NO. This is neither capital gains nor income. It is a division to give her a portion of what is already hers.
Answered on Jun 04th, 2015 at 1:06 PM
Social Security Disability Attorney serving Melbourne, FL
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Law Office of Robert E. McCall
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Impossible to say without an examination of the documents. Usually equitable distribution is not taxable but there are exceptions. Whoever is receiving the funds needs a tax advisor ASAP.
Answered on Jun 04th, 2015 at 12:48 PM
Family Law Attorney serving Irvine, CA
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Law Office of Julie A. Ringquist
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If it is a distribution of community property, no (she already owns it, even if it's not currently held in joint title, it's just being divided). If it is for Spousal Support, then it is taxable income to her and tax deductible to you.
Answered on Jun 04th, 2015 at 12:19 PM