Property Settlements Made Incident to a Divorce Have No Immediate

question 120

True/False

Property settlements made incident to a divorce have no immediate tax consequences; that is,the transfer from one spouse to another is not taxable.

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Definitions:

DJIA

An abbreviation for the Dow Jones Industrial Average, a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Bank Insolvency

A situation where a bank's liabilities exceed its assets, rendering it unable to meet its obligations.

Certificates of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank to a depositor.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with fixed dividends.