What if the property that I want to transfer to my spouse produces income?

If you have property such as accounts receivable, deferred compensation, pension plans, these types of property may have an “income” component.  The common recommendation is to reserve disposition of these assets until you know the details about the property and then to divide the property between the parties such that each spouse reports his or her share of the income when received. You can structure this as contingent spousal support or an allocation of community income which is similar to the division of stock options.

If you are interested in learning more, you can contact me at Amanda@gordonfamilylaw.com for more information.

The information set forth in this Question and Answer was not intended or written to be used, and it cannot be used, by any taxpayer for the purpose of avoiding United States federal tax penalties that may be imposed on the taxpayer.  The information was written to support the promotion or marketing of the matters addressed in this Question and Answer.  All taxpayers should seek advice based upon the taxpayer’s particular circumstances from an independent tax advisor.  The foregoing language is intended to satisfy the requirements under the regulations in Section 10.35 of Circular 230.