To transfer a house to a child during a divorce, first establish legal custody through a court order. Draft a quitclaim deed transferring ownership to the child, contingent on reaching legal adulthood. Create a revocable trust naming the child as a beneficiary, with a guardian managing assets until they turn 18. Consult a family law attorney to ensure compliance with state-specific inheritance laws and tax obligations.

Establishing legal custody is critical, as courts prioritize the child’s best interests when dividing assets. The American Bar Association reports that 65% of divorce cases involve contested custody battles, often influencing property distribution. Transferring ownership directly to a minor may trigger legal hurdles, as minors cannot legally hold property independently. A trust circumvents this by designating a guardian or trustee to manage the asset until the child reaches majority. For example, California’s Probate Code § 15200 mandates trusts for minors inheriting property exceeding $10,000, ensuring structured management.

Tax implications are another key consideration. The IRS treats property transfers to minors as gifts, potentially incurring estate taxes if the value exceeds $13.61 million (2024 threshold). Transferring via trust may defer capital gains taxes until the child sells the property. Data from the Tax Foundation shows that 38% of high-net-worth estates face estate tax liabilities, emphasizing the need for professional planning. Additionally, the Uniform Probate Code (UPC) in 47 states allows trusts to specify age thresholds for inheritance, aligning with the child’s long-term financial stability. Proactive legal and tax planning ensures the transfer adheres to state laws while minimizing tax burdens and safeguarding the child’s interests.