Raymond and Cynthia Daley Zakrzewski - Page 9




                                        - 8 -                                         
          Accordingly, it is the marital settlement agreement of 1995 that            
          we look to as the sole, operative document at issue in this case.           
               First, we note that the payments at issue were not included            
          in “Article V, Maintenance,” which expressly provided that the              
          payments were allowed as an alimony deduction in accordance with            
          section 71(b)(1)(A) and (B).  Rather, these payments were made              
          pursuant to a provision of the marital settlement agreement                 
          segregated from those payments that were clearly indicated as               
          alimony.  Second, “Article XIV, General Provisions, section C,              
          provides that “All of the provisions of this Agreement shall be             
          binding upon the respective heirs, next-of-kin, executors,                  
          assigns and administrators hereto.”  This conflicts directly with           
          section 71(b)(1)(D), and therefore, leads us to the holding that            
          these payments are not deductible by petitioners as alimony or              
          separate maintenance.                                                       
               Petitioners next argue that the terms of the marital                   
          settlement agreement should not be construed in accordance with             
          Illinois law, and that we should look only to the parties’                  
          intent, which would undoubtedly then lead us to the holding that            
          these payments were, in fact, alimony or separate maintenance               
          because petitioners intended them to be for that purpose.  As               
          evidence of this intent, petitioners testified that had they                
          known that they would not be entitled to deduct the payments from           
          their gross income, they would not have made them.                          







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next 

Last modified: November 10, 2007