Originally Posted by MI_Custumz
I recently got divorced and had to sign over the mutual funds to the ex per the judgment of divorce. The account was in the trust name and was supposed to be changed to just her. I knew she was going to try to cash it out as soon as she could. They issued her a check for the entire amount and it has my name on it. I am not sure how it's made out or to who, but she can't cash it and I refuse to sign it. I do not want it counted as income on a 1099. The trust is under my SSN for tax purposes as well. The mutual fund company said to give my judgment of divorce at tax time to a tax agent and it shouldn't be an issue. Well, I have repeatedly asked them to put it in her name only. She somehow got the account closed and a check issued. I did not authorize the account to be closed as an individual or trustee. I am planning on stopping at the accounting office after work, but not sure what route to take. I do not want this counted as income for my taxes. Feeling frustrated and any insight is appreciated.

So the divorce judgement required you to sign over mutual funds to the ex.
But you have not yet signed anything?
The ex has closed the account by means unbeknownst to you and has a check as a cash out made out to at least you?
I would say you need a lawyer for tax purposes and to draft an air tight signed/notarized release of any transfer as required by the judgement.
I am puzzled whether you are tax liable since its a judgment for release of the funds, or by you signing the check you have a capital gains conversion for you and a "gift" to her.
Get a lawyer.


Reality check, that half the population is smarter then 50% of the people and it's a constantly contested fact.