CALIFORNIA FAMILY LAW
...Income Tax Matters
......Community Property: Assets
.........Assignment of Income
5 Cards On This Topic:

Parties may not contractually assigned tax consequences of income from party who earned them to another.

Income from services and c/p assets properly assigned one-half to each party for tax purposes.

Where H irrevocably assigned W 40% of his royalties K from former band as part of divorce settlement, she was properly taxed on income. Assignment of income rule did not apply.

Nondeductible support paid by corporation to supported spouse taxable to obligor; may not assign income for tax purposes.

IRS position on Int.Rev. Code §1041 [no gain or loss between spouses in transfers incident to divorce] versus assignment of income discussed.