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I. Terms of the Divorce Documents
Petitioner argues that the divorce documents provided for
termination of the annual payments on the death of Ms. Springer.
Petitioner notes that the documents specifically state that the
monthly payments of $1,500 would terminate on the death of either
party or the remarriage of Ms. Springer, whereas the annual
payments would not terminate on the death of petitioner or the
remarriage of Ms. Springer. Petitioner contends that the only
reasonable interpretation of the two provisions is that the
annual payments would also terminate on the death of Ms.
Springer.
Respondent contends that the annual payment of $50,000 is
not deductible as alimony by petitioner because the divorce
documents do not specifically state that the annual payments
would terminate on the death of Ms. Springer. Respondent claims
that the annual payment provision should be analyzed separately
from other payments and property transfers included in the
marital settlement. Respondent argues that the $50,000 payment
made in 1996 is not deductible if only the language relating to
the annual payments is considered.
Generally, different types of payments made pursuant to a
divorce decree are not treated as part of a single stream of
payments, but rather each type of payment is analyzed separately
to determine its proper characterization. Oman v. Commissioner,
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