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| "PeterL" <po.ning[at]gmail.com> wrote - quote - > On Mar 24, 11:44 am, "R. Pile" <michael.br...[at]wdn.com> wrote: > > A husband and wife have a separation agreement under which he is > > making monthly payments to her. I understand that such payments are > > treated as alimony - deductible by the payer, taxable to the payee. > > The husband has now violated some provision of the agreement and her > > lawyer is claiming that the entire agreement is now vacated and all > > payments revert to voluntary status, neither deductible nor taxable. > > > Correct? If some non-monetary provision is ignored, but the monthly > > checks keep coming, are they still treated as alimony - even if the > > agreement is declared invalid? (This matter is before a judge, so the > > question may eventually become moot.) > > This is a legal question and I am not a lawyer. But it seems that the > other lawyer claims that because some part of the agreement is > violated, then supposedly the monthly payment has somehow become > "voluntary". If this is indeed correct, then prior to this alleged > violation the payments were still alimony. So depending on the date > of said violation, any prior payments would still be alimony. And as > the other poster said, if it's voluntary than there is nothing to > compel payment of any kind. And her lawyer, being a lawyer, might be trying to get the husband to stop payment so that can be waived in front of the judge or jury as proof of how evil the husband is. He should consult with his attorney ASAP as already mentioned. -- Paul A. Thomas, CPA Athens, Georgia -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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| On Mar 24, 11:44*am, "R. Pile" <michael.br...[at]wdn.com> wrote: - quote - > A husband and wife have a separation agreement under which he is > making monthly payments to her. *I understand that such payments are > treated as alimony - deductible by the payer, taxable to the payee. > The husband has now violated some provision of the agreement and her > lawyer is claiming that the entire agreement is now vacated and all > payments revert to voluntary status, neither deductible nor taxable. > Correct? If some non-monetary provision is ignored, but the monthly > checks keep coming, are they still treated as alimony - even if the > agreement is declared invalid? *(This matter is before a judge, so the > question may eventually become moot.) This is a legal question and I am not a lawyer. But it seems that the other lawyer claims that because some part of the agreement is violated, then supposedly the monthly payment has somehow become "voluntary". If this is indeed correct, then prior to this alleged violation the payments were still alimony. So depending on the date of said violation, any prior payments would still be alimony. And as the other poster said, if it's voluntary than there is nothing to compel payment of any kind. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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| "R. Pile" wrote: - quote - > A husband and wife have a separation agreement under which he is
It looks to me like the ongoing validity of his obligation under the> making monthly payments to her. I understand that such payments are > treated as alimony - deductible by the payer, taxable to the payee. > The husband has now violated some provision of the agreement and her > lawyer is claiming that the entire agreement is now vacated and all > payments revert to voluntary status, neither deductible nor taxable. > Correct? If some non-monetary provision is ignored, but the monthly > checks keep coming, are they still treated as alimony - even if the > agreement is declared invalid? agreement is the key. Tax law (IRC 71) doesn't require anything other than payment "under a divorce or separation instrument." - quote - > (This matter is before a judge, so the
State law is going to decide whether he's liable for the payments or not.> question may eventually become moot.) Based on my cursory reading of the statute and general cussedness, since she's (through counsel) saying further payments are voluntary, I'd stop the payments until the court settled things. I do not recommend that course to him, though. He should talk to his lawyer, who should check up on both the family and tax law sides of the question. Sure hope there are no children caught in the middle of these two. -- Phil Marti Clarksburg, MD -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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| A husband and wife have a separation agreement under which he is making monthly payments to her. I understand that such payments are treated as alimony - deductible by the payer, taxable to the payee. The husband has now violated some provision of the agreement and her lawyer is claiming that the entire agreement is now vacated and all payments revert to voluntary status, neither deductible nor taxable. Correct? If some non-monetary provision is ignored, but the monthly checks keep coming, are they still treated as alimony - even if the agreement is declared invalid? (This matter is before a judge, so the question may eventually become moot.) -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| agreement, separation |
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