Articles Posted in Divorce

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Logue v. Comm’r, T.C. Memo. 2017‑234, 2017 WL 5713945 (2017)


(a) Facts: The parties entered into a premarital agreement.  The agreement provided, among other things, that the wife would receive, upon divorce, a lump sum of $100,000, plus $10,000 for each year the parties were married.


The parties married but divorced after four years.  A separation agreement required the husband to pay the wife $140,000, exactly the amount that the above provision would require for a four-year marriage.  The agreement further provided:


The parties each acknowledge that this agreement, and each provision of it, is expressly made binding upon the heirs, assigns, executors, administrators, representatives and successors in the interest of each party.


2017 WL 5713945, at *4.


A modified separation agreement then reduced the payment from $140,000 to $117,970.97 on the ground that the husband had already paid $22,029.03 in expenses for the wife.  The husband’s total liability, including the expenses, remained at exactly $140,000.  The modified agreement was incorporated into a Texas divorce decree.


The husband paid the wife the $117,970.97.  On his next tax return, he took an alimony deduction of $170,000.  Of this amount, $32,000 was for alimony paid to a prior spouse, and $140,000 was for the payments made to the wife.


The IRS disallowed the deduction above the $32,000 paid to the former spouse, and the husband petitioned for relief in the Tax Court.

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Davidson v. Comm’r, T.C. Memo. 2018-38, 2018 WL 1611811 (2018)


(a) Facts: The parties were divorced by an Arkansas court, and the divorce decree divided the parties’ debt.  Within a few days after the decree was entered the judge sent the parties a letter, which stated:


When I made my ruling from the bench last Thursday, I failed to mention the following issues that should be included in the Decree of Divorce:


  1. The division of debt ordered from the bench shall be considered as support for Mrs. Davidson [Kelley] and shall not be dischargeable in bankruptcy[.]


2018 WL 1611811, at *1.  The court then entered a modified decree, which stated:


  1. ALIMONY: In light of the foregoing division of the debts, and real and personal property, and having reviewed all the primary and secondary factors of alimony the Court recited, the Court finds that it is not appropriate to award the Plaintiff [Kelley] alimony in this case. Further, given this Court’s division of the marital property and debt between the parties and because Mr. Davidson’s future income is too speculative to set any kind of time frame on when his income would have to improve for it to inure to the benefit of the Plaintiff [Kelley], the issue of alimony will not be held open to allow Plaintiff [Kelley] to reopen this case and file a petition for alimony in the future.


  1. BANKRUPTCY: The division of the debt ordered from the bench shall be considered as support for Mrs. Davidson [Kelley] and therefore shall not be dischargeable in bankruptcy.


Id. at *4.

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Recently, Fox 8 reported about cities across the country where divorce is on the rise. Journalist Mary Kay Blakely compared the psychological toll of divorce to a triple coronary bypass. The article noted that divorce was not only expensive, but also complicated and connected to various medical problems. Thousands of people divorce each year. Around 50% of all marriages in the country conclude in a divorce. The United States ranks twelfth in the world for percentages of marriages that terminate in divorce. If you’re considering separating from your spouse, it’s worthwhile to speak to a North Caroline divorce lawyer to know your options.

The composition of our country’s divorced population has transformed over time. Certain cities have seen a huge increase in divorce. A leading genealogy research website called MooseRoots conducted a study of the percentage change of populations in various cities. In its calculation of this change in each state’s divorced population between 1970-2010, three North Carolina cities appeared on list of the top 25 cities.

The North Carolina city that was highest on the list came in at number 4 of all cities listed. It was Greensboro, North Carolina. The percent of those who divorced in 1970 was 3.02. The percentage of divorced couples in 2010 was 10.83. The percentage change between those years was 260.