Who pays tax on divorce ordered ESOP disbursement? My husband is finalizing our divorce with the courts on Wednesday. He is asking for a court order that would allow him to withdraw funds from his ESOP in order to settle asset division in the divorce. The court order states that the check from the ESOP will be sent to me.
My question is who will have to pay taxes on and report the money? Him or me?
We have been physically separated for all of 2013, so I know that I can file taxes as single "head of household" and I know that I will receive a generous tax refund because I qualify for the earned income credit, child credit, etc. so I don't want to jeopardize losing that refund because of this ESOP disbursement.
Please help. |