JohnB5677
Employee Tax Expert

Deductions & credits

A divorcing spouse can elect to "buy out" or purchase the other spouse's financial interest in a home. 

 

For instance, when you have a home with a mortgage, it is common for one party to keep the house and pay the other spouse, or sell the house and provide the equity as a property settlement.

 

Mortgage payoffs and tax consequences are typically taken care of.   Divorce lawyers will help couples understand what part of the settlement is taxable.

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