- 12 - 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.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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