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Lastly, section G (“Tax Provisions”), paragraph 2 (“Payments
To Be Alimony”) reads:
It is the intention of the parties that all payments
made to Wife by Husband pursuant to the provisions of
Paragraph B 2 hereof while the parties are living apart
are intended to be alimony payments, taxable as income
to Wife and deductible from income by Husband for
income tax purposes, and that no other payments made
under this agreement are to be deemed or treated as
alimony. In the event of any action taken by Wife
which affects Husband’s rights to deduct any portion or
all of the alimony payments from Husband’s income, Wife
will be liable to Husband for the full amount of the
increase in Husband’s tax liability resulting from the
loss of the deduction. * * * All alimony payments
shall terminate as set forth in Paragraph C 2 or upon
the prior death of Wife.
We are satisfied that payments made pursuant to both the
order and the agreement meet the requirements of section 71(b)(1)
and (2). The order is a decree requiring payments for
maintenance or support within the purview of section 71(b)(2)(C),
and it does not contain any provision that the payments not be
includable in the payee’s gross income. Furthermore, the order
specifically provides that payments are to cease upon the death
of the payee spouse.
The agreement, entered incident to the decree of divorce,
also specifies that the payments are to cease on the payee
spouse’s death. The agreement provides that the monthly payments
are to be included in the gross income of the payee spouse.
Notably, the agreement specifically supersedes any prior
agreements between the parties, constitutes the full
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