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New Member
posted Jan 23, 2020 9:05:36 AM

My husband and i owned a llc together,part of divorce is he is buying me out for a weekly check.do i need to claim this and if so where? also do i need to pay taxes on it

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2 Replies
Level 15
Jan 23, 2020 9:54:26 AM

No, if the payments are "a division of marital assets".

Expert Alumni
Jan 23, 2020 10:24:06 AM

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.