You may want to check with your broker to see if they have something similar. Or, To Pay For College Now lets say you have the same situation as above, but you want to use the stock proceeds to pay college expenses for your child or grandchild. We would be happy to help you figure out if this would benefit you. It's an unpleasant topic, but if it happens, don't go into a divorce without considering the tax impacts of decisions made. The disparity in the basis of assets being split could result in uneven capital gains taxes on the eventual sale.
Alimony is deductible by the payer and taxable to the recipient, while child support is neither.
Of course the Internal Revenue Code has some complicated rules to qualify payments as alimony. Retirement accounts transferred must be done correctly, under a Qualified Domestic Relations Order, to avoid premature distribution taxes and penalties. Who gets the exemptions for children needs to be decided, with the relevant tax impacts considered. Let's hope you don't need it, but if you need advice on this issue please contact us early in the process. One EIN must be under the owner's name and is to be used for all federal payroll reporting purposes.