Transfer Incident To Divorce

Transfer Incident To Divorce means:
a transfer that is related to the ending of a marriage or that occurs within 1 year after the date on which the marriage ends. No gain or loss is recognized on a transfer of property from an individual to a spouse, or formed/- spouse, if incident to divorce. The nonrecognition rule does not apply, however, if the spouse is a nonresident alien or to the extent that the liabilities transferred exceed the adjusted basis of the property. Any transfer to a spouse on which gain is not recognized is not considered a sale or exchange. The transferee's basis in the property will be the same as the transferor's.