Taxes  |  Format: Flash

Divorce Transfers & Settlements (Updated - 2)

Course Overview
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 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
After completing this course, the course participant should 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 Sec. 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 Sec. 1041,
    - Determining property basis for the transferor and transferee spouse under Sec. 1041.
  • Identify remedies for the deferred tax pitfall of Sec. 1041 by:
    - Determining deferred tax liability of interspousal purchases,
    - Recognizing the tax deferral of Sec. 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.
    Catalog Number: 99SANT05-v2
    CPE Credits: 2 Registry / 2 QAS
    Author: Danny Santucci
    Advanced Preparation:
    General understanding of federal income taxation
    Course Level: Overview
    Field of Study: Taxes
    Content Partner: SmartPros Ltd.
    QAS: QAS Certified based on 50 minute hours.
    Course Type: Self-Study
    Minimum Passing Grade: 70%
    Soft/Hardware Reqs.:  Adobe Acrobat® Reader for the .pdf files
     Adobe® Flash® Player 9 or higher
     56k or Greater Internet Connection
     Modern DHTML Compatible Browser
     Ram: 256 MB minimum
     Windows or Mac OS
    Release/Expiration Dates: Nov 06, 2018 / Nov 06, 2020