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.
Learning Objectives
Upon successful completion of this course, participants will be able to:
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 Section 1041.
Determining the deferred tax liability of interspousal purchases and later dispositions, recognize the tax deferral of Section 1031 exchanges, and identify the benefit distribution problems and the tax advantages of QDROs.
Major Topics
Divorce Transfers and Settlements
Selected Asset Divisions
