AlexanderS08
Expert Alumni

Get your taxes done using TurboTax

Generally, payments for divisions of assets are not taxable; however, you should consult your attorney for what this payment is being considered.

 

Often times in settlement agreements a spouse will agree to treat a payment as Alimony, even if it is for an equitable division of a marital asset like an LLC, as is the case in your scenario. That is why it is crucial to consult your attorney for what the payment should be considered.

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