- 3 -
The settlement agreement and the divorce decree contained
numerous provisions wherein petitioner and his former wife agreed
to the custody and sharing of parental responsibility of their
two children; however, no child support was required of either
party. The agreement and the divorce decree also contained
several provisions with respect to the division of their property
and liability for marital debts. None of those provisions,
however, affect the issue in this case. At issue are two
provisions in the settlement agreement and the divorce decree
relating to a $32,000 payment by petitioner to his former spouse
that petitioners contend constituted alimony and, therefore, is a
deductible adjustment to their gross income. The two provisions
(in both the marital settlement agreement and the divorce decree)
are as follows:
16. PENSION/RETIREMENT. Both parties agree that the
Husband shall pay to the Wife one-half (�) of the Husband's
current 401K Plan which as of October 1, 1999, had a balance
of $150,000.00. Accordingly, the Wife shall receive
$75,000.00, plus an additional $32,000.00 representing lump-
sum alimony, for a total amount due the Wife from the
Husband's 401K of $107,000.00. The Husband shall retain the
remainder of his 401K account.
* * * * * * *
19. ALIMONY. The Husband agrees to pay the Wife as
lump-sum alimony, the amount of $32,000.00 payable from his
401K as delineated above in paragraph 16.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011