Generally, no. Section 1041 of the tax code exempts most of these payments from tax.

Good luck.

Lee S. Rosen
Chief Executive Officer
Rosen Law Firm
4101 Lake Boone Trail, Suite 500
Raleigh, North Carolina 27607

The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service but a full discussion with an attorney should be undertaken before taking any action.

My wife and I are separating tomorrow and I refinanced the house and am giving her half of the equity. Is that money considered taxable income for her?