You can read Hinson v. Commissioner, US Tax Court Summary Opinion 2007-92 (June 7, 2007) here. The code is quite clear that to be taxable income/tax deductible, alimony (maintenance) must terminate on the dearth of the payee.Read More

It’s that time of year again. Of course, the general rule is that lawyers’ fees and costs in connection with obtaining a divorce are not tax deductible. As with many general rules, there are exceptions:Read More

Tax errors in divorce agreements are costly: Here’s how to avoid them is the title of an article by Eva Rosenberg, in Dow Jones MarketWatch. Lynne Gold-Bikin from Norristown, Penn, and an AAML Fellow, points out some frequent tax problems in divorce. “Alimony recapture can be a common problem, cautions Gold-Bikin.Read More

OFFERS IN COMPROMISE ARE NOW MORE TAXING: New Federal Law Requires Down Payment With Offer in Compromise Submission; 20% Down Payment or First Installment Required; Source: Family Law Taxation Blog.The new law applies to Offers in Compromise submitted after July 16, 2006.Read More

Alan Pearlman, who writes the Chicago Family Law Blog, has a great article on the tax side of dividing retirement assets upon divorce: Tax Issues Related to Qualified Domestic Relations Orders and Divorce It is reprinted below. Thanks, Alan.Read More

The Tax Code is law. We are lawyers. Why, then, do we see so many agreements that say “The parties acknowledge that their attorneys have not provided any tax advice, blah, blah, blah?” Yes, it is an attempt at an exculpatory clause for the attorneys. However, did you know that such language could be used...Read More

Dobson v. Dobson, 159 SW3d 335 (Ky.App., 2004) Spouse granted innocent spouse relief by the IRS is not entitled to res judicata and trial court assignment of tax deficiency 40% to innocent spouse was upheld. Tax audit has uncovered a tax deficiency, but trial court reasoned that the parties benefited from the lower tax burden...Read More

The Family Law Taxation Blog has a recent posting about innocent spouse tax relief: http://www.familylawtaxation.com. However, even if the IRS absolves a sopuse from tax liability, in a KY divorce, the trial court can assess some of the burden of the tax to the innocent spouse. Dobson v. Dobson, 159 SW3d 335 (Ky.App., 2004) Spouse...Read More

When maintenance is front-end-loaded, the payor may be required to recapture in the third year excess alimony. Two calculations are necessary.The first compares the second year payments to the third year payments. If the amount paid in year three plus $15,000 is less than paid in the second year, the excess will be recaptured. The...Read More