Property Transfers Incident to Divorce: the End of a Nightmare, the Opening of Two Loopholes

Posted: 14 Apr 2010  

Steven J. Willis

University of Florida - Levin College of Law

Date Written: January 6, 2005

Abstract

From 1987 until 2002, the assignment of income doctrine applied to property transfers incident to divorce. Since Revenue Ruling 2002-22 was issued, the doctrine has not applied. This article argues that the revenue ruling is poor public policy and it should be revoked. It effectively results in the deductibility of child support and alimony without restriction. As a result, the ruling effectively repeals two important statutory constraints.
For practitioners, however, this can be very beneficial, as it gives substantial tax benefits to some divorcing couples.

Keywords: divorce, tax, property division

JEL Classification: H20, H24

Suggested Citation

Willis, Steven J., Property Transfers Incident to Divorce: the End of a Nightmare, the Opening of Two Loopholes (January 6, 2005). Available at SSRN: https://ssrn.com/abstract=644622

Steven J. Willis (Contact Author)

University of Florida - Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States
(352) 273-0680 (Phone)
(352) 392-7647 (Fax)

HOME PAGE: http://www.law.ufl.edu/faculty/willis/

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