Property owned by the payer and paid for by the payer, will not be considered alimony even if the ex-spouse is utilizing the property, and a divorce decree states that payment must be made by the payer for the benefit of the payee.
Child support payments are non-deductible to the payer and non-taxable to the recipient.
3. C Jim's cost basis in the stock will be $70,000. When he sells the stock, he will have a taxable gain on the profit above the original cost basis. There is no deduction for property ordered to be transferred in a divorce decree.
The purpose of the qualified domestic relations order or QDRO is to inform and authorize the IRA custodian or 401k plan administrator on the court's ruling of the splitting of the retirement accounts.
Remember the acronym "C-WALT-WINN" for all the community property states. They include: California, Washington, Arizona, Louisiana, Texas, Wisconsin, Idaho, Nevada and New Mexico.
In community property states, the death of the first spouse allows both halves of the property to be "stepped-up" to the full FMV at date of death. So, Rose's new adjusted cost basis in the home would be $400,000.
InvestingA total return swap is a contract in which a payer and receiver exchange the credit risk and market risk of an underlying asset.
RetirementDivorce is never fun, but knowing the rules and anticipating the impact of retirement plan division and pension payouts can make things easier.
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Personal FinanceWhen they get divorced, men and women make different types of mistakes. A strategic primer.
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Personal FinanceHere's a breakdown of how much it will cost to get divorced in the U.S. today.
RetirementThese are the answers to five common questions on how to handle retirement accounts when couples divorce.
Personal FinanceDividing assets and liabilities in a divorce can be a sad, complicated task. But with some planning, patience and the help of a financial adviser, splitting couples can avoid some obvious and ...
InvestingThe amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
TaxesIf your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.