Will I need to repay the 2009 First Time Home Buyer Tax Credit when my wife and I Divorce?

The instructions say to Complete Part III of the Form 5405 (a href="http://www.irs.gov/pub/irs-pdf/f5405.pdf?portlet=3)" rel="nofollow"http://www.irs.gov/pub/irs-pdf/f5405.pdf…/a if you claimed the first-time homebuyer credit on your original or amended 2008 return and you disposed of the home or it ceased to be your main home in 2009. Enter the date you disposed of, or ceased using it as your main home, and check the box for the reason why that applies to you. If you transfered the home to your ex-spouse as part of a divorce settlement, then you get to enter the full name of your ex-spouse. The responsibility for repayment of the credit is then 100% transferred to your ex-spouse if they don't live there for the required 36 months......The good news is that if you didn't do any of that in 2009, then you don't have to worry about it until next year's tax season! If you both move out in 2010, then you'll both have to repay it because it will stop being your primary residence and the IRS won't split it 50/50. It will just come out of the refund of whomever files first - as long as the IRS gets the money, they really don't care who pays it back or pays how much or if it's equal - they're just there to collect the tax/repayment from either of you if you file separately- that's just putting it bluntly - and you'll have to sort out who pays what on your own.