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each week hereafter through July, 2002. Said
alimony payments shall be received by the
Wife directly from Husband’s payment from the
ABC Insurance Center. Should the Husband die
prior to the full payment of this alimony,
the Wife shall continue to receive said
payment directly from ABC Insurance Center
through the term of the contract.
The Circuit Court issued an Agreed Final Decree in September 1992
which changed some provisions in the original Dissolution
Agreement--mostly those dividing marital property--but left
intact the paragraph requiring Rogers to pay $225/week through
July 2002.
The parties stipulated all the facts, including the fact
that the payments continued to be made throughout 2000, and the
case was submitted for decision under Rule 122.2
Discussion
Payments incident to a divorce traditionally fell into one
of two categories for Federal tax law: property settlements or
alimony. Property settlements are a division of marital
property, and for many years have been neither deductible from
the income of the paying spouse nor includible in the income of
the receiving spouse. Alimony is a division of income, and for
many years has been deductible by the paying spouse and
includible by the receiving spouse. See, e.g., Yoakum v.
2 All Rule references are to the Tax Court Rules of Practice
and Procedure, and all section references are to the Internal
Revenue Code as in effect for 2000, unless otherwise noted.
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Last modified: May 25, 2011