I have understood, in a divorce and spouse 1 buys out spouse 2 from the marital home the basis for spouse 1 will be their original basis + any improvements.
However, I thought I had read somewhere the basis becomes the original basis + 1/2 of the change in value used to determine buy-out. Is this misinformation?
I want to be clear. If the basis stays the original value I need to negotiate as this will mean capital gains for me in the future.
