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Section 71(b)(2) defines a “divorce or separation
instrument” as:
(A) a decree of divorce or separate maintenance or a
written instrument incident to such a decree,
(B) a written separation agreement, or
(C) a decree (not described in subparagraph (A))
requiring a spouse to make payments for the support or
maintenance of the other spouse.
Characterization of Monthly Payments
Petitioner argued that none of the $1,400 monthly payments
she received in 2002 should be included in her gross income under
section 71(a) because she and Mr. Gutzler had a “handshake
understanding” that the payments were not alimony. Petitioner
testified to an oral agreement between Mr. Gutzler and her that
purportedly took place concurrent with the order. It provided
that Mr. Gutzler would not deduct the payments, nor would
petitioner include the payments as income, if she used the
payments solely for her attorney’s fees, payment of Mr. Gutzler’s
automobile insurance, and payments on an automobile in Mr.
Gutzler’s possession. Petitioner now asks this Court to reject
the underlying order and agreement and, in the alternative,
consider evidence: (1) Of a “handshake” agreement, and (2) that
the terms of the “handshake” agreement should supplant the
meaning of alimony pendente lite and alimony as used in the order
and the agreement. Since petitioner disputes the legal effects
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Last modified: May 25, 2011