Title Insurance, Quitclaim Deed, Settlement Payment in Divorce
Question
I am part of a title insurance company. One of our insured did not have their title handled correctly when they were divorced. The short story is that a Quitclaim Deed is needed from the ex in order for the insured to be able to sell their property. The settlement payment made to the ex was over $600.00. Is this reportable on a 1099MISC, and if so, which box should this be reported in? One other wrinkle. The ex happens to currently be in prison. Does this affect the reporting requirement at all?
Answer
First, let’s look at the issue of the prison inmate.
Though there are some unique reporting requirements for special populations, such as members of the military, you want to be careful in looking for such distinctions as they are rare.