Hello Jv. That's a good question and I think you should ask a tax advisor. I understand what you are trying to do but I have never heard that buying out one spouse as part of a divorce triggers capital gains tax liability for the spouse who is bought out. What I have heard is that the spouse who buys out the other spouse ends up with the entire capital gains burden upon selling the house later. Your attorney should be able to advise you regarding the tax consequences of your property division or refer you to a tax attorney for an in-depth analysis. You'd definitely be well advised to get clarity about the tax consequences before you enter into any binding settlement agreements. Best of luck.