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, emphasizing planning considerations. This 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.
Learning Objectives
• Identify the various forms of marital property and how to proceed with a tax structured property settlement.
• Identify the tax impact of property divisions and the importance of complying with §1041.
• Determining the deferred tax liability of interspousal purchases and later dispositions, recognize the tax deferral of §1031 exchanges, and identify the benefit distribution problems and the tax advantages of QDROs.
Major Topics
• Property rights
• Premarital agreements
• Application of §1031
• Incident to divorce
• Property basis
• Purchases of residence between spouses
• Purchases of business interests between spouses
• Selected asset divisions of residence & business interests
• Real & personal property
• Pension benefits
