Taxes on divorce settlement?

What is the name of your state? Illinois

During a marriage a home was purchased. Several years later, the marriage ends and a divorce settlement is awarded based on the current value of the home. Essentially, one party is buying out the other's share of the equity. Is this buyout subject to capitol gains taxes? If not, what types of tax consequences are involved in a divorce settlement?

There is no tax on this. The rule is:

No gain or loss is recognized on a transfer of property from you to (or in trust for the benefit of):
• Your spouse, or
• Your former spouse, but only if the transfer is incident to your divorce.
This rule applies even if the transfer was in exchange for cash, the release of marital rights, the assumption of liabilities, or other considerations.