How can I avoid paying a divorce settlement?
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How can I avoid paying a divorce settlement?
obtain an insurance policy with the other spouse or a child as beneficiary. earmark retirement funds to be divided in the future. liquidate (sell) property and share the proceeds with the other spouse, or. pay the couple’s credit card debts.
How does getting a divorce affect your taxes?
When a divorce settlement shifts property from one spouse to another, the recipient doesn’t pay tax on that transfer. Thus, if you get property from your ex-spouse in the divorce and later sell it, you will pay capital gains tax on all the appreciation before as well as after the transfer.
How long must you live in a house to avoid capital gains tax?
12 months
Is it better to sell your house before or after divorce?
Waiting to sell is typically better for your home value, too. That extra time gives you several more years to build equity in the home and pay down the mortgage. So, you get more money out of the home sale if you wait to sell until after the divorce.
