Glenn and Vera divorce during 2018. Per their 2018 divorce agreement, Glenn receives their former personal residence valued at $180,000 with a basis of $100,000. Also, Glenn will pay Vera $5,000 annually for eight years. If Vera dies before the end of the eight years, the balance of the payments is to be paid to Vera's estate in a lump sum. The couple has not lived together for the past two years.

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Under the tax law effective for divorce agreements executed after 2018, alimony payments are not deductible by the payer nor taxable to the recipient. Additionally, the transfer of property between spouses or former spouses incident to divorce is not a taxable event.

Glenn and Vera Divorce During 2018