In a divorce, the “general rule” under IRC Section 1041(a) says:
A: Assets can be transferred tax-free between spouses or former spouses.
B: Assets can never be transferred tax-free between spouses or former spouses.
C: Assets transferred between spouses or former spouses are always treated as taxable gifts under the federal gift tax act.
D: Asset transfers between spouses or former spouses are treated as taxable dispositions (for federal income tax purposes) in return for each party's release of his or her marital rights.
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