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January 29, 2025
Question

Does house basis change after divorce?

  • January 29, 2025
  • 1 reply
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Does my house basis change after my ex-spouse buys me out (by trading assets) as part of our divorce settlement? 

The market value of the house at time of divorce was higher than it was at time of purchase. Thank you.

1 reply

Employee
January 29, 2025

No, your basis is still what you paid for the house, plus any improvements you made.  Transferring assets subject to a divorce is not taxable, not deductible, and does not adjust basis.