Does property division give rise to capital gains taxes?
Generally not at the time of the dissolution of marriage, although there can be tax consequences later. A division of property pursuant to decree of dissolution of marriage is not a taxable event. A transfer of real estate pursuant to a decree of dissolution of marriage is also exempt from the real estate excise tax. There will probably be tax consequences for unmarried cohabitants. In any event, we strongly recommend consulting with a tax attorney or a tax accountant as part of every property division. I am a member of a club. Should the membership be listed in the decree? Yes. Club memberships are “property” for purposes of dissolution of marriage, and should be listed. So should frequent flyer miles, season tickets, and possible lawsuits against others. Another item of property often overlooked is accrued vacation pay. My husband is a physician. Is his practice worth anything? Quite possibly. A professional who is also an owner or co-owner of his or her practice may have “profession
