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longer merely a contract between private individuals but is the
judgment of the court. McGuire v. McGuire, supra.
In this case, the arbitration agreement and the divorce
decree were made between the same parties, embraced the same
subject matter, ordered the same support amounts and payment
schedule, and was intended by the parties to be incorporated into
the divorce decree. Under Texas law, the arbitration agreement
became a part of the consent judgment once it was incorporated
into the final divorce decree. Therefore, by virtue of the
merger, the arbitration agreement becomes an integrated part of
the “divorce or separation instrument” within the meaning of
section 71(b).
Whether the Initial Payment Was Received
“Under” a Divorce or Separation Instrument
The resolution of whether the Initial Payment was received
“under” a divorce or separation instrument turns on the question
of timing. Both the arbitration agreement and the divorce decree
(collectively, the qualifying divorce instrument) are explicit in
their terms that alimony payments “will be payable beginning April
1, 2002”.
Mr. Ray contends that his legal obligation was to pay alimony
of $20,000. He argues that so long as the sum of $20,000 was
paid, it is irrelevant whether he commenced the alimony payments
in March or in April of 2002. Mr. Ray’s argument ignores the
question of the Initial Payment’s timing.
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