Capital gains on sale of stock. (Fairshare cases: spotlight).

The husband (the golfer Tom Watson) and the wife were held, by the Court of Appeals of Kansas, to be equally responsible for capital gains tax on the sale of stock during the divorce by a trustee. Marriage of Watson [22 P.3d 1081 (Kan. App. 2001), explained that among the parties' assets was the husband's 84 percent beneficiary interest in an inter vivos trust holding 374,846 shares of common stock of Coca-Cola. During the pendency of the divorce proceeding the trustee sold the stock. The capital gains tax approximated $3,000,000.

THE SEPARATION AGREEMENT

Because the stock had been held by an inter vivos trust with the husband as a beneficiary, his Form 1099 …