Alimony Treatment for a Single Payment

Abstract:     
The author concludes that, contrary to the IRS and the Tax Court’s position, a single lump sum payment to a divorced spouse can qualify for alimony treatment in some circumstances subject to the front-loading rules. The author also contends that to conform to the requirement of the alimony provision, a payment of a divorced spouse’s legal or medical expenses under a divorce or separation instrument should qualify for alimony treatment even though those payments usually will not satisfy the literal terms of the statute.

Number of Pages in PDF File: 6

Keywords: alimony, taxation, single lump, front-loading, 71, webb, spouse

JEL Classification: H20, H24

Accepted Paper Series