Alas, my spouse and I are divorcing and this is a tax-related divorce question, so I hope it isn't off topic for the group. We are trying to get all of our ducks in a row and work out an agreeable plan for the division of our assets to present to her lawyer, who we hope will do nothing more (and charge for nothing more) than guide us through the system. Here's one that stumps us: She will retain the house. We will both itemize next year and the interest on the house payments is enough to be worth looking at. The way we figure it, the first six months interest paid in 2006 is a joint asset - that is, we should each be able to deduct half of that on our taxes next year. How does one go about doing this without causing the IRS to go into a fit? Does it get written into the divorce decree? The state is OK, if that matters.
-- John D. Goulden