Norman Spector and Marcia Spector - Page 12

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          the weekly payments to property settlement and 80 percent to                
          alimony.5                                                                   
               3.   The Nature of the Payments                                        
               In deciding the character of an award in a divorce or                  
          separation decree, great weight is given to the language and                
          structure of the decree.  Griffith v. Commissioner, 749 F.2d 11,            
          13 (6th Cir. 1984), affg. T.C. Memo. 1983-278.  The decision                
          whether payments are in the nature of support or a property                 
          settlement, however, is not controlled by the labels assigned to            
          the payments by the court in the divorce decree or by the parties           
          in their agreement but, instead, depends on all of the facts and            
          circumstances.  Yoakum v. Commissioner, supra at 140; Beard v.              
          Commissioner, 77 T.C. 1275, 1283-1284 (1981); Gammill v.                    
          Commissioner, 73 T.C. 921, 926-927 (1980), affd. 710 F.2d 607               
          (10th Cir. 1982); Hesse v. Commissioner, 60 T.C. 685, 691 (1973),           
          affd. without published opinion 511 F.2d 1393 (3d Cir. 1975).               
               In deciding whether payments are a property settlement or              
          alimony, we have considered whether:  (a) The recipient                     
          surrendered valuable property rights in exchange for the                    
          payments; (b) the parties intended the payments to effect a                 
          division of their assets; (c) the amount of the payments plus the           


               5 Sec. 71(c)(2), which applies to divorce instruments                  
          executed before 1985, designates certain payments which are made            
          over a period of more than 10 years as periodic and thus taxable            
          to the recipient to the extent of 10 percent of the principal               
          sum.  Dr. Ehrenworth made payments to Mrs. Spector for 12 years,            
          under the terms of the agreement.  Respondent did not argue and             
          we do not address the applicability of that section.                        


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