- 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 satisfy
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011