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terms of the settlement agreement, petitioner would have been
liable for the $37,000 payment in the event of Ms. Gamer’s prior
death.
Respondent contends that petitioner was obligated under the
terms of the settlement agreement to make the $37,000 payment to
Ms. Gamer in the event of her prior death. Petitioner primarily
argues that, because the $37,000 payment was required to be made
almost simultaneously with the execution of the settlement
agreement (i.e., within 10 days of the date of the settlement
agreement), there arose no liability that would not have
terminated at Ms. Gamer’s death.
We hold that the $37,000 payment petitioner made to Ms.
Gamer in 2000 was a property settlement and not deductible
alimony.
In reaching our conclusion, we apply the language of the
settlement agreement itself. Paragraph 10 of the settlement
agreement provides that both petitioner and Ms. Gamer waive
alimony. Paragraph 18 of the settlement agreement, however,
provides that “[petitioner] shall pay [Ms. Gamer] the sum of
$37,000" in exchange for Ms. Gamer’s interest in the marital
residence. The terms of the settlement agreement do not state
that petitioner’s liability to make the $37,000 payment would
cease upon the prior death of Ms. Gamer. Additionally, paragraph
14 of the settlement agreement provides that petitioner and Ms.
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