Category Archives: DIVORCE

UNFAIRNESS TO FORMER SPOUSE IN PAYING TAX LIABILITY OF FORMER HUSBAND IS NOT A FACTOR IN INNOCENT SPOUSE EQUITABLE RELIEF WHEN JOINT RETURN WAS FILED

O’Neil v. Commissioner T.C. Memo 2012-339 is a good innocent spouse case to read.  Without going into all of the dreary details, the bottom line is that the parties were married and then divorced.  While they were estranged and still separated, … Continue reading

Posted in DIVORCE, EQUITABLE RELIEF, INNOCENT SPOUSE, JOINT RETURNS, TAX | Tagged , , , , , | 2 Comments

LUMP SUM ALIMONY ARREARAGES SATISFIED USING A QDRO

The following question was recently posted on the American Bar Association Tax Law and Practice Discussion Board: A taxpayer who we shall describe as the Former Husband (FH) agrees to settle alimony arrearages owed to his Former Wife (FW) by … Continue reading

Posted in DIVORCE, QDRO, TAX, Uncategorized | Tagged , , , , | 4 Comments

ALIMONY OR NOT? THAT IS THE QUESTION

A state family court or divorcing spouses by settlement can provide that payments, otherwise qualifying for the alimony deduction, shall nonetheless be non-deductible and not includible in the income of the recipient spouse; but, conversely neither the state court by … Continue reading

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WRITTEN SEPARATION AGREEMENT REQUIRES EVIDENCE OF “MEETING OF MINDS” (AN AGREEMENT) FOR ALIMONY DEDUCTION

One of the requirements for a cash payment to be treated as alimony under Section 71(b) (1) is that it generally be paid pursuant to a divorce decree or decree of separate maintenance(or written instrument incident to the decree such … Continue reading

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STATE COURT JUDGEMENT FAILS: COURT ATTEMPTS TO MICRO-MANAGE DEPENDENCY EXEMPTION ENTITLEMENT BUT DOES NOT REQUIRE CUSTODIAL SPOUSE TO SIGN AND DELIVER FORM 8332

It is important for divorce attorneys and clients to remember what a state court judge can and cannot do with regard to federal income tax matters.  Knowing the rules will help lawyers draft appropriate clauses for marital settlement agreements and … Continue reading

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TO FILE OR NOT TO FILE JOINTLY: AN ANNUAL DILEMMA

It is tax time again and most married couples will file jointly without considering the consequences or considering only the dollar tax-savings (marriage bonus) from rate splitting for single-earner couples. Couples with two wage earners more likely face a marriage … Continue reading

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TAX PAYMENTS FOLLOWING INNOCENT SPOUSE RELIEF

What is commonly referred to as “innocent spouse relief” is actually three distinct types of possible statutory relief from the usual “joint and several liability” of a spouse who elects to file a joint return with his or her mate … Continue reading

Posted in COMPLIANCE, DIVORCE, EQUITABLE RELIEF, INNOCENT SPOUSE, JOINT RETURNS, TAX | Tagged , , , , , , | Leave a comment