In a divorce, the "general rule" under IRC Section 1041(a) says:

A: Assets can be transferred tax-free between spouses or former spouses.

B: Assets can never be transferred tax-free between spouse or former spouses.

C: Assets transferred between spouses or former spouses are always treated as taxable gifts under the federal gift tax act.

D: Asset transfers between spouses or former spouses are treated as taxable dispositions (for federal income tax purposes) in return for each party's release of his or her marital rights.