but you can take the amount of that settlement up to 60k and gift it to your spouse and the IRS can't touch it. See, the IRS allows you a one-time-only gift to your spouse. It's good up to sixty thousand dollars. It's perfectly legal. Go ask the IRS, they'll say the same thing.
Actually, I feel silly telling you all this. I'm sure you would have investigated the matter yourself.
But if you want to ask any further questions, here's my card: