Home transfer - divorce settlement

[Terry D EA]

 Unfortunately, I now have another divorce case issue. My client had entered into an agreement with the now ex-spouse to pay them 250K. here's your money now go away type thing. Doing this left their retirement in tack which is a significant win due to the retirement having a value that exceeds 2M.

I am assuming this would be sort of the same as a transfer incident to the divorce and not taxable to the recipient nor deductible to the giver. First time dealing with this kind of issue. I will be preparing a 2025 estimate within the next few days

Edited September 24, 2024 by jklcpa
moved this to its own topic

[jklcpa]

Yes, just a shifting of assets per the divorce settlement, not any sort of sale or gain/loss to report at all.