Johny Desauguste - Page 9

                                        - 8 -                                          
          agreement indicated that petitioner or his estate might be liable            
          to make payments to Mrs. Desauguste’s estate after her death.                
               The Supreme Court of Florida requires very specific language            
          in order for an agreement to fall into the exception to the                  
          general rule that alimony terminates upon the death of either                
          spouse.  Compare Underwood v. Underwood, 64 So. 2d 281 (Fla.                 
          1953) and Johnson v. Every, 93 So. 2d 390 (Fla. 1957), with                  
          O’Malley v. Pan Am. Bank, supra.                                             
               Considering the Florida cases, the Court finds the provision            
          in petitioner’s June agreement to be ambiguous.  This Court                  
          declines to read the provision in petitioner’s June Agreement so             
          broadly as to constitute a requirement that petitioner continue              
          to make alimony payments to Mrs. Desauguste’s estate after her               
          death.  See Pettid v. Commissioner, T.C. Memo. 1999-126.                     
          Therefore, under the Florida rule, the payments to Mrs.                      
          Desauguste would terminate upon petitioner’s death or upon Mrs.              
          Desauguste’s death, whichever occurs earlier.  The requirement of            
          section 71(b)(1)(D) is satisfied because there is no liability               
          for petitioner to make any payments of any kind to Mrs.                      
          Desauguste’s estate after her death.  The Court concludes that               
          petitioner is entitled to a deduction for alimony paid to Mrs.               
          Desauguste.                                                                  









Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011