What are the tax implications of selling a Folly Beach home in a divorce in 2026?

Property transferred between divorcing spouses as part of a settlement generally does not trigger a taxable event on its own, though the eventual sale of a Folly Beach home still follows standard capital gains rules based on the couple's original purchase price and improvements. How the primary residence exclusion applies can also depend on which spouse remained living in the home. A CPA should review the specific divorce settlement and sale timing before either spouse assumes a tax outcome.