Divorce Transfers & Settlements

Table of Contents

Chapter 1 - Divorce Transfers & Settlements - Section 1. 1

Property Rights. 1

Marital Property. 1

Common Law Property. 1

Community Property. 2

Equitable Distribution. 2

Separate Property. 2

Premarital Agreements. 3

Uses & Benefits. 3

Control & Scope. 4

Retirement Equity Act of 1984. 4

Enforceability Requirements. 5

Property Settlements. 7

Section 1041. 7

Application of '1041. 7

Mandatory Scope. 8

Property vs. Income. 8

Savings Bonds. 9

Imputed Interest 10

Incident to Divorce. 10

Related To Termination. 11

Rebuttable Presumption. 11

Divorce or Separation Instrument 12

Transfers in Trust 12

Third Party Transfers. 13

Property Basis. 13

Gift Variation. 14

Passive Activity Loss Property. 14

Property Transferred In Trust 15

Basis in U.S. Savings Bonds. 15

Negotiated Property Divisions. 15

Adjudicated Property Divisions. 15

General Rule - Immediate & Specific. 16

Liabilities. 17

Holding Period. 17

Notice & Recordkeeping. 17

Purchases between Spouses. 18

Home Mortgage Interest 19

Deferral & Exclusion of Gain. 19

Business & Investment Property. 19

Chapter 1 - Section 1 Review Questions. 20

Chapter 1 - Divorce Transfers & Settlements - Section 2. 22

Section 1031 Exchange. 22

Asset Separation. 23

Related Parties. 23

Two-Year Restriction. 23

Foreign Property. 23

Spousal Transfers. 23

Installment Sale of Assets. 23

Selected Asset Divisions. 24

Section 121 Home Sales. 24

Two-Year Ownership & Use Requirements. 24

Special Divorce Rules. 25

Tacking of Prior Holding Period. 25

Prorata Exception. 25

Limitations on Exclusion. 26

Installment Obligations. 26

Business Interests. 27

Corporate Stock. 27

Section 302 Stock Redemption. 27

Recapitalization. 28

Partnerships. 28

Section 736(a) Payments. 28

Effect on Recipient 28

Section 736(b) Payments. 29

Exclusions From '736(b) Treatment 29

Liabilities. 30

Series of Payments. 30

Section 754 Election. 30

Insurance Policies. 30

Real & Personal Property. 31

Classification of Assets. 31

Character of Gain or Loss. 31

Pension Benefits. 31

Qualified Domestic Relations Order 32

Taxation of Distributions. 33

Deferred v. Present Division of Benefits. 34

Deferred Division Arguments. 34

Present Division or Alternate Property Arguments. 34

Individual Retirement Arrangements. 35

IRA Deduction Limit 35

Divorce Distributions. 36

Amounts Not Rolled Over 36

Retirement Planning After Divorce. 36

Social Security Benefits. 37

Divorced Spouse Benefits. 37

Divorced Widow(er) Benefits. 37

Military Pensions. 38

Divorced Spouse Benefits. 38

Jurisdiction Requirement 38

Disposable Pay. 38

Direct Payment 39

Divorced Widow(er) Benefits. 39

Social Security Offset 40

Civil Service Pensions. 40

Divorced Spouse Benefit 40

Divorced Widow(er) Benefit 41

Railroad Pensions. 42

Divorced Spouse Benefit 42

Divorced Widow(er) Benefit 43

Chapter 1 - Section 2 Review Questions. 44

Answers & Explanations. 45

Chapter 1 - Section 1 Review Questions Feedback. 45

Chapter 1 - Section 2 Review Questions Feedback. 49

Keywords & Phrases. a

CPE Exam Answer Sheet d

Final Examination. e