Divorce Assets

[fasteddie577]

My sister got divorced in 2019. Does she have to report the assets or cash she received from her divorce?No retirement accounts were involved. Thank you. 

State of residence: Texas.

[Opus 17]

Generally speaking, cash and property divided in a divorce is not taxable income or tax deductible to either party.  However, if she received certain tax privileged assets, such as a distribution from the spouse’s 401K through a qualified domestic relations order (QDR0), she has a limited number of options of what to do with that money, some of which involve paying tax. If she received a (QDR0) she would also have received a 1099 form from the trustee.

[MaryK4]

No, property settlements from a divorce are NOT taxable income.

[fasteddie577]

Thank you very much.