Buy Out Spouse's Interest in a Community Business (C-Corp) from the Company's Assets - Does This Trigger a Taxable Event?

I am going to make this format a little less formal.  More fluid.  So don't gig me for my spelling, grammer, punctuation, I plead the fifth.  In this case, the community will have no cash liquidity (not booze) with most of the capital tied in real estate and the community business.  How does one spouse buy out the other's interest in the business (a C-Corp) without liquidating assets?  Do the parties set up  a note payable where the buyer can make payments, using after tax dollars?  However, what if the spouse(buyer) decides to pay the obligation directly through/from the cash of the business (C-Corp)?

Does this transaction trigger a taxable event?  Is there a way to avoid taxes completely on this transaction?  If it is a taxable event, what option would result in the lowest taxes?  Should both parties be liable for the tax?  Should the buyout price be adjusted/discounted for taxes?

This issue comes up often in divorce, and no one seems to have a definitive answer.  Professionals have strong opinions but usually opinions not supported by the tax code/law.  You could apply common sense to this issue.  However, common sense should never be applied to tax issues, because, "it's the tax code". 

You'll have to come back later for the answer.