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The Initial Payment satisfies all of the requirements under
section 71(b)(1)(B)-(D). In dispute is section 71(b)(1)(A),
specifically: (1) Whether the arbitration agreement was a
“divorce or separation instrument”, and if yes, (2) whether the
Initial Payment was received by Ms. Bader “under” a divorce or
separation instrument.
Whether the Arbitration Agreement Was a
“Divorce or Separation Instrument”
Section 71(b) defines the term “divorce or separation
instrument” as:
SEC. 71(b). Alimony or Separate Maintenance Payments
Defined.--For purposes of this section–
* * * * * * *
(2) Divorce or separation instrument.--The term “divorce
or separation instrument” means-
(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.
Mr. Ray contends that the arbitration agreement is a “decree
of divorce”, because the arbitration agreement merged with the
divorce decree once the decree was filed with the State court on
April 12, 2002. The merger clause under the divorce decree
provides for a merger of a “mediation agreement” into a final
decree of divorce:
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Last modified: May 25, 2011