Throughout each family case there are several tax implications that come to pass. Below is a brief outline of the most common tax implications: Property Transfers: Per the Internal Revenue Code section 1041, transfers of property between former spouses as an incident of divorce is tax free. No gain or loss is recognized on such transfers. Incident to a divorce means the transfer occurs within one year of the marriage ceasing and is related to the cessation of the marriage (such as through a Judgment or Marital Settlement Agreement). Except.
