- 6 -
2005), affg. T.C. Memo. 2003-163. Here, as the Settlement
Agreement itself does not provide any conditions for the
termination of Mr. Garner’s payments to his ex-wife, we look to
Georgia State law to resolve the issue. Morgan v. Commissioner,
309 U.S. 78, 80-81 (1940); see also, e.g., Kean v. Commissioner,
supra; Sampson v. Commissioner, 81 T.C. 614, 618 (1983), affd.
without published opinion 829 F.2d 39 (6th Cir. 1987); Berry v.
Commissioner, T.C. Memo. 2000-373 (stating “[a]lthough Federal
law controls in determining [the taxpayer’s] income tax liability
* * *, State law is necessarily implicated in the inquiry
inasmuch as the nature of [the payor’s] liability for the
payment” was based in State law), affd. 36 Fed. Appx. 400 (10th
Cir. 2002).
Under Georgia law, alimony is defined as an allowance out of
one party’s estate, made for the support of the other party when
living separately. Ga. Code Ann. sec. 19-6-1(a) (LexisNexis
2004). It may be either temporary or permanent. Id. Permanent
alimony is further characterized as either “periodic” alimony or
“lump sum” alimony. Winokur v. Winokur, 365 S.E.2d 94, 95 (Ga.
1988). Lump sum alimony may be paid in installments. See id.
The difference between the two under Georgia law is that the
obligation to pay periodic alimony terminates at the death of
either party, yet the obligation to pay lump sum alimony in
installments over a period of time does not. Id.
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