Capital Gains Can Be Joker in Divorce Deck

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Q: Early in our more than 20-year marriage, my husband and I purchased investment land at a resort on a lake for $50,000. The land was in his name. At the time of our divorce two years ago, this property was appraised for $500,000.

We have no children. We agreed on a 50-50 division of all assets except this property. Because I knew it would appreciate more, I wanted it, and my husband agreed to let me buy him out for $150,000 if I waived my rights to alimony. So I went to the bank, borrowed $150,000, which I paid my husband, and I waived alimony.

As explained to me by my lawyer at the time, if I sold the property, I would pay capital gains on everything above what we …