@pk it's like I said - more a legal issue than a tax issue. As you know, not all divorces are the same state to state based on differing laws. Even if the state doesn't tax personal income, the treatment of monies and the such by state law, can have an impact on federal reporting of those monies/assets. For the most part, there's nothing taxable or reportable on a division of assets. However, this situation seems to go beyond that with a lein that could (and most likely will) have an impact on the reportability of that division of assets. I could write a book on this and all the possibilities running through my mind right now. But don't need to further complicate what I see as an arleady complicated issue here.
