- 5 - the requirement of section 71(b)(1)(D) has not been satisfied because the settlement agreement and the divorce decree are silent with respect to the obligation of petitioner to pay the $32,000 in the event of the prior death of his former spouse. Respondent further argues that, under Florida law, petitioner's obligation to make the $32,000 payment would have continued in the event of the prior death of petitioner's former spouse; therefore, under the facts and the State law of Florida, the payment does not satisfy section 71(b)(1)(D). Petitioners contend that, under Florida law, the prior death of the former spouse would have terminated petitioner's obligation to pay the $32,000; therefore, section 71(b)(1)(D) was satisfied.3 As noted above, the settlement agreement and the divorce decree are silent with respect to petitioner's obligation to pay the $32,000 in the event his former spouse died before the payment was made. Section 71(b)(1)(D) requires, as a condition to qualify as alimony, that the obligation to pay terminates upon the death of the former spouse. If the payer is liable for even one otherwise qualifying payment after the recipient's death, none of the related payments required before death will be alimony. Sec. 1.71-1T(b), Q&A-13, Temporary Income Tax Regs., 49 3 Respondent does not contend that the $32,000 represented a division of property between petitioner and his former spouse, in which event, the payment would not constitute alimony.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011