Coursework Writing-Discuss different asset split in a divorce
Divorce clients are currently in mediation discussing different asset split and buyout scenarios. The biggest assets they will be splitting is private equity investments and a condo.
The wife will buyout the husband’s interest in the condo, but letting him keep all of their marital private equity investments.
Our understanding for New York is that with the buyout (#1), they will need to pay a transfer tax on the amount of the buyout (NY city and state transfer taxes) due to Title 20 of the New York Codes, Rules and Regulations section 575.11(a)(10), “A conveyance from one spouse to the other pursuant to the terms of a divorce or separation agreement is subject to tax.”
Then, following the sale of the condo after 12-24 months (#2), we are also anticipating transfer taxes on the amount of the sale of the home.
I this understanding of the transfer taxes correct and does this scenario create two events where they will need to pay transfer taxes: first with the buyout, and second with the home sale.
How they might bypass the transfer taxes other than the two of them co-owning the condo until it is sold to a third party?
