- 6 - for tax years ending after the date of enactment. See OBRA sec. 7841(a)(3), 103 Stat. 2428. The court order in this case was issued in 1985; it precedes the effective date of section 414(p)(11) and cannot qualify as a QDRO. The decree provided that petitioner is to receive a "sum of money equaling one-half" of her former spouse's Coast Guard retirement pension, after deduction of Federal and State taxes, and that such amount is not to be taxable income to her or deductible by her former spouse. The language of the court's direction that the amount not be taxable to petitioner or deductible by her former spouse disqualifies the payments from being considered as alimony. See sec. 71(b)(1)(B). The payments are to continue until the mortgage is paid or the house is sold. The payments constitute a division of marital property. Estate of Goldman v. Commissioner, 112 T.C. 317, 323-324 (1999), affd. without published opinion sub nom. Schutter v. Commissioner, 242 F.3d 390 (10th Cir. 2000). The language of the decree also meets the requirement of 10 U.S.C. sec. 1408(a)(2)(C) (1994) for direct payment to petitioner out of the retired pay of petitioner's former spouse: in the case of a division of property, [the court order] specifically [provides] for the payment of an amount, expressed in dollars or as a percentage of disposable retired pay, from the disposable retired pay of a member to the spouse or former spouse of that member. [Emphasis supplied].Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011