Divorce Transfers & Settlements
Field of Study:
Participants will learn how to apply, implement, and evaluate the strategic tax aspects of marital dissolutions and living together arrangements. Current perspectives on property transfers and asset divisions are examined with an emphasis on planning considerations. This mini-course reviews property settlements and other transfers incident to divorce. Basis allocation, third party transfers and purchases between spouses are also examined. Common pitfalls for the unwary such as transfers in trust, installment notes, and purchases between spouses are analyzed. Application of these tax principles is exampled in selected asset divisions of the residence, business interests, insurance, and pension benefits.
After completing this course you will be able to:
- Identify the various forms of marital property and how to proceed with a tax structured property settlement stating the benefits of premarital agreements to avoid potential divorce problems.
- Recognize property settlements under §1041 by: identifying its application to interspousal and third party transfers, specifying the factors that determine whether or not a property transfer is incident to divorce under §1041, determining property basis for the transferor and transferee spouse under §1041.
- Identify remedies for the deferred tax pitfall of §1041 by: determining deferred tax liability of interspousal purchases, recognizing the tax deferral of §1031 exchanges, specifying the key elements of the home sale exclusion and stating their application; recognizing benefit distribution problems and the tax advantages of QDROs.
Overview. This program is appropriate for professionals at all organizational levels.
General understanding of federal income taxation.
Type of delivery method:
Recommended CPE credits:
Final examination expiration date:
The program participant will have one year from the date of purchase to complete the course and final examination.
Web CPE is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org