To transfer a sold property during a divorce, first determine legal ownership of the proceeds. If the property was jointly owned, the sale proceeds may be classified as marital or separate property depending on state laws. A divorce decree or court order should outline how to divide the funds. Execute a quitclaim deed or transfer deed, ensuring both parties sign. Consult a real estate attorney to ensure compliance with state conveyance laws and tax obligations. File the deed with the local county recorder’s office. For tax implications, the IRS considers capital gains tax on profit if the property was held for over a year. Marital property is typically split equally, but tax liabilities may be divided proportionally.

Divorce property transfer requires legal clarity to avoid disputes. A 2022 American Bar Association study found 60-70% of divorce cases involve property division, with 45% of couples needing court intervention. State laws, such as community property in California or equitable distribution in New York, dictate how proceeds are treated. The IRS reports 68% of capital gains from real estate sales are taxed at 15-20%, depending on profit and filing status. Failure to properly allocate proceeds can lead to tax audits or post-divorce litigation. For example, a 2021 IRS audit revealed 22% of high-income离婚 couples underreported real estate gains. Legal guidance ensures compliance with both state conveyance requirements and federal tax codes, minimizing financial and legal risks.