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With regard to consideration Richard received in connection
with the September 1998 transfer of his one-half interest in the
farm acreage, Marilou paid off Richard’s liability under the
divorce decree on $15,892 of mortgage debt and real estate taxes,
for which $15,892 of consideration Richard is to receive credit.
We emphasize that the obligation Richard had under the
divorce decree to Marilou was based on the anticipated sale by
Richard of the entire property or on a transfer to Richard of
Marilou’s one-half ownership interests in the farm acreage and in
the residence acreage. Since Richard never received Marilou’s
interests and since Marilou herself participated in the transfers
of her interests therein to other individuals, Richard’s
obligations to Marilou under the divorce decree may be seen to
have been extinguished as a result of the transfers at issue in
this case. But such extinguishment is not properly regarded as
consideration that Richard received for the transfer of his one-
half ownership interests in the farm acreage and in the residence
acreage. Rather, as stated, to the extent such extinguishment
occurred here, it did so because Richard never received Marilou’s
ownership interests and because Marilou herself transferred her
interests in the properties.
Petitioners argue that the September 9, 1998, transfers by
Richard and Marilou of the residence acreage to Marilou and
Carrie and of the farm acreage to Carrie, Tracy, and Deborah
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