Milbourne v. Comm’r, T.C. Memo. 2015-13, 2015 WL 393040 (2015) (a) Facts: A husband and his wife separated. She proposed a separation agreement, which required him to pay $6,000 per month in alimony. The husband refused to sign this agreement, as he did not want to pay more than $2,500 per…
Iglicki v. Comm’r, T.C. Memo. 2015-80, 2015 WL 1886010 (2015) (a) Facts: A Maryland separation agreement required a husband to pay $735 per month in child support to a wife. If the husband defaulted on child support, he would immediately become liable for $1,000 per month in spousal support. Liability…
North Carolina General Statutes Section 50-20(b) (4) defines divisible property. Divisible property covers certain values created post-separation. A husband that continued to work in a dental practice post-separation did not create active appreciation. Husband did not change anything about his business methods to increase business. The growth between the date…
Watch out for those hurried, last minute North Carolina agreements that link alimony and child support termination; you could get an unintended tax consequence and the loss of the tax deduction. While the Johnson case, discussed herein, is not a North Carolina case, it could be. Guys and gals, you…
It is tempting to lump child support and post separation support/alimony into a bucket of one dollar amount, sometimes referred to as “family support”. This is particularly tempting in the early part of a case, but it is DANGEROUS. A couple of tax rules will help: Rule 1: Don’t create…
North Carolina alimony statutes and state case law make technicalities on the “death” element of alimony under federal tax law difficult, and one needs to exercise extreme care when drafting a private alimony agreement or contract in North Carolina. Unlike many states, all alimony awards in North Carolina are not…
Schilling v. Comm’r, T.C. Memo. 2012‑256, 2012 WL 3848477 (2012) (a) Facts: The parties settled their divorce case by signing a separation agreement. The agreement awarded the wife $2,450 per month on spousal support for six years. It, further, provided that the wife’s spousal support would drop by specified amounts…
This article is part 4 of a series of articles regarding Innocent Spouse. This final blog on the basics of the current Innocent Spouse tax law will do two things: 1) summarize changes discussed in the first three articles; 2) give some practical guidance to attorneys, CPAs, and clients in…
Part 3 of a 4-Part Series on Innocent Spouse Basics (a) The Former Requirements: Rev. Proc. 2003-61, 2003‑32 I.R.B. 296, 2003 WL 21708514 (Aug. 11, 2003) (b) The New Requirements: Rev. Proc. 2013-34, 2013‑43 I.R.B. 397, 2013 WL 5179241 (Oct. 21, 2013) (1) This is the new Revenue Procedure setting…
This article is part 2 of a 4 part series on Innocent Spouse basics. Be sure to read all four parts. Also, check this blog regularly for new information on innocent spouse law, as I will write about it frequently. I’ll keep you posted of new cases and developments from…