Dave is willing to transfer the jointly owned home to Marcia. He wishes to keep the couples jointly owned boat.

Dave is willing to transfer the jointly owned home to Marcia. He wishes to keep the couples jointly owned boat. Dave will either transfer securities to Marcia ($100,000 adjusted basis, $150,000 fair market value) or will pay her $30,000 for 5 years with interest of 8%. What issues should Marcia and Dave consider when formulating their divorce agreement? Solution: Marcia and Dave should consider the taxability of the transfer of the home to Marcia and the boat to Dave. That is, what are the tax consequences of a property settlement?