My soon to be ex-husband bought our first home this past April. Only his name is on the mortgage, but we both got the full credit ($4,000 each for a total of $8,000). We are now getting a divorce and I wasnt sure if I would have to pay my half of the credit back.
After some research, I did find out that yes… whoever moves out of the home has to repay their portion (half) of the first time homebuyer tax credit. However, I also found out that if I legally transfer my rights to the home to my ex within the divorce decree, then that transfers full responsibillity of the tax credit to my ex. Meaning that he becomes responsible for repayment of the full $8k should he move out of the home, sell, or foreclose. As long as I legally transfer all my rights regarding the property to my ex-husband, then I am off the hook. But it has to be legal and included in the divorce decree.
I figured there is probably someone out there in the same awful situation and could use some advice. I obtained that information from the IRS and also my divorce lawyer.