- 9 - Gamer remain bound to all obligations of the settlement agreement in the event of the death of either individual. Petitioner also admitted at trial that he understood that under the terms of the settlement agreement, in the event of Ms. Gamer’s prior death, he would still be obligated to make the $37,000 payment to Ms. Gamer’s estate and Ms. Gamer’s estate would still be obligated to transfer her interest in the marital residence to him. The fact that petitioner was required to make the $37,000 payment within 10 days of the execution of the settlement agreement is irrelevant. In Webb v. Commissioner, T.C. Memo. 1990-540, the separation agreement provided, in part, that “The Husband shall pay, simultaneously with the execution of this Agreement, to the Wife, the sum of [$15,000]”. We held that the fact that the separation agreement provided that the husband “shall pay” was sufficient to create a liability that would have been enforceable by the ex-wife’s estate had she died after the execution of the separation agreement but before payment by the husband. In Webb, it was of no consequence that the husband’s payment was made simultaneously with the execution of the separation agreement. We find that the terms of the settlement agreement provide that petitioner would still be required to make the $37,000 payment in the event of Ms. Gamer’s prior death. Accordingly, the $37,000 payment from petitioner to Ms. Gamer fails to satisfyPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011