Divorce & Marital Planning strategies

10 plays in this category. Each one covers the mechanics, who it fits, and the estimated impact — then generates a deep dive against your own numbers.

• Divorce & Marital Planning

  QDRO — Split a 401(k)/Pension Tax-Free in Divorce

  A Qualified Domestic Relations Order splits qualified plans between spouses with no 10% penalty and no tax.

  10% penalty avoided + tax-free rollover option
• Divorce & Marital Planning

  Innocent Spouse Relief (§6015) — Escape Joint Tax Liability

  Three flavors of §6015 relief remove joint liability for a spouse's understated tax, deficiency, or unpaid balance.

  Full release of joint tax liability — often $10K–$500K+
• Divorce & Marital Planning

  §682 Alimony Trust — Shift Trust Income to Ex-Spouse's Bracket

  Grantor trust for the benefit of an ex-spouse shifts income taxation to the lower-bracket recipient post-TCJA.

  $10K–$50K/yr in rate arbitrage
• Divorce & Marital Planning

  Prenup / Postnup — Convert Community Property to Separate Property

  A properly-drafted marital agreement locks down separate ownership of pre-marital and gift/inherited assets.

  50% of contested assets — often $500K–$millions
• Divorce & Marital Planning

  Married-Filing-Separately Arbitrage in Separation Year

  In the year of separation, MFS can beat MFJ when incomes are lopsided, deductions are personal, or spouse is untrustworthy.

  $2K–$15K in tax + student-loan savings
• Divorce & Marital Planning

  HSA / IRA Transfers Incident to Divorce — Tax-Free Split

  §408(d)(6) IRA transfers and §223(f)(7) HSA transfers pursuant to divorce decree are tax-free — no rollover rules apply.

  Avoid 10% penalty + ordinary income on transfer amount
• Divorce & Marital Planning

  §121 Exclusion Preservation Post-Divorce

  Divorced spouses can still both claim §121 use/ownership tests via §121(d)(3) tacking — up to $500K exclusion preserved.

  Up to $500K combined capital-gain exclusion preserved
• Divorce & Marital Planning

  §1041 Transfer Between Spouses — No Gain/Loss Recognition

  Property transfers between spouses (or ex-spouses within 1 yr / incident to divorce within 6 yrs) are tax-free.

  Prevents mis-priced settlements — often $50K–$500K+
• Divorce & Marital Planning

  Post-TCJA Alimony/Child Support Restructuring

  With alimony non-deductible post-2018, restructure as property transfers, HSA/IRA splits, and unallocated support.

  Recover 5–15 points of the lost pre-TCJA deduction
• Divorce & Marital Planning

  Forensic Accounting to Uncover Hidden Marital Assets

  Lifestyle analysis, bank tracing, and business valuation flush out under-reported income and hidden accounts.

  $100K–$millions in recovered marital assets