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OPINION
We consider here whether certain payments pursuant to a
temporary order are to be treated as alimony. The temporary
order and subsequent related documents contain a single amount
designated solely for “family support”, followed by the judge’s
proposal to divide the stated amount into separately designated
amounts for child support and spousal support, respectively.
Petitioner Ms. Ambrose’s primary argument is that part of the
payments were "fixed", within the meaning of section 71(c)(1), as
child support payments and are therefore not includable in her
income or deductible by Mr. Ambrose. Specifically, she asserts
that the temporary order for generic family support payments was
subsequently modified and converted to separate spousal and child
support payments. Ms. Ambrose, in the alternative, argues that
child support payments are not terminated upon the payee’s death
so that the section 71(b)(1)(D) requirements are not met and,
hence, the payments do not constitute alimony includable in her
income. Petitioner Mr. Ambrose argues that, since the temporary
order provides solely for family support and because the court
did not order separate allocations for child support or alimony,
he is entitled to deduct the payments. In order to determine the
proper tax treatment of the payments in question, we must analyze
and interpret two State court orders.
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Last modified: May 25, 2011