Summary
Cover Story
Joint ownership of a principal residence can present financial and tax-related problems to divorcing couples. These problems include the retitling of the property and the rollover of gains under IRC Sec. 1034 if the property is sold. The consequences of divorce on these two issues are discussed to serve as a guide to couples in the process of separation.See the full content of this document
Extract
Hanging onto what's yours: how to weather a divorce and still keep your home.
Most married couples purchasing a principal residence choose to title their residence in joint tenancy (joint tenants with right of survivorship or tenants by the entirety). As such, each spouse has a 50% interest in the property. Should they sell their residence and purchase a more expensive principal residence, Internal Revenue Code Section 1034 (hereafter referred to as Code Section 1034) permits each spouse to rollover his or her portion of the realized gain.
A divorcing couple may unfortunately face several financial and tax-related problems with respect to their jointly owned residence. Among these problems are the retitling of the jointly owned property and the rollover of gain provisions of Code Section 1034. In this article, we shall examine th...See the full content of this document
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