Transfer / Sale of House to Ex-Spouse As Part of a Divorce
I live in a community property state (Texas) and my ex-wife and I got divorced in 2025. As part of the divorce decree, she was awarded our house. The mortgage for the house was only in my name and therefore, she could not assume the loan. The only way for her to take possession of the house was to take out a separate mortgage, at the property value determined by the judge, and payoff my mortgage. In exchange for the house, I received a cash buy-out in 2025 which I then used to purchase a new home also in 2025.
Do I need to report to the IRS this "sale" of my home to my ex-spouse since it was part of a divorce decree transfer of property?
Per Publication 504 and Publication 523, it doesn't appear that I need to report anything, but need confirmation.
