Transfers of Property pursuant to a Divorce are generally tax free
If you receive property as part of a divorce settlement, you do not have to pay any tax as a result of the transfer of the property to you.
Selling the Property
If you were to sell property awarded to you at a later date, you may have to pay capital gains taxes depending on the gain realized from the sale of the property and whether or not the property is your principal residence. For instance, if your home qualifies as a principal residence (you have lived in the home for two out of the last five years), you do not have to pay a capital gains tax if the gain received from the sale of the house is less than $250,000 ($500,000 if married).
Additional resources provided by the author
Acknowledgements: Thanks to my assistant Laura Jerdak for her valuable contributions in researching my legal guides.