No, as long as the payment was made as part of the terms of the transfer of property pursuant to a divorce, it would not be taxable.
Generally, no gain or loss is recognized on a transfer of property from you to (or in trust for the benefit of):
- Your spouse, or
- Your former spouse, but only if the transfer is incident to your divorce.
This rule applies even if the transfer was in exchange for cash, the release of marital rights, the assumption of liabilities, or other consideration.
Exceptions to nonrecognition rule
This rule doesn’t apply in the following situations:
- Your spouse or former spouse is a nonresident alien.
- Certain transfers in trust, discussed later.
- Certain stock redemptions under a divorce or separation instrument or a valid written agreement that are taxable under applicable tax law, as discussed in Regulations section 1.1041-2.
See IRS Publication 504 for more information.
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