Planning for Divorce, Unmarried Couples, and Special Circumstances

Free CFP Exam lesson in Estate Planning. 17 min read, ~2,524 words.

Section 1041: divorce property transfers are tax-free with carryover basis, creating hidden tax liabilities the planner must quantify. QDRO penalty exception: distributions taken directly from the plan are penalty-free; roll to an IRA first and the exception vanishes. Post-2018 alimony: non-deductible by payor, non-taxable to recipient; the decree date controls...