Classify each of the following statements:
-In full settlement of her marital rights, Henry transfers property to his wife, Nancy. Three months later, Henry and Nancy are divorced.

Question

Quizplus · Accepted Answer

The transfer of property to a spouse in full settlement of marital rights, especially in the context of a divorce, is generally considered a division of property rather than a taxable gift or estate transfer. Therefore, no taxable transfer occurs under the gift or estate tax provisions.

Classify Each of the Following Statements