Legal Question in Family Law in New Jersey

Re: Lump Sum Alimony Payment

That sounds odd to me. I have never had a client have a problem with this. Did you call your prior attorney?

Re: Lump Sum Alimony Payment

The IRS is ridiculous. You made a payment in lieu of alimony which means that it satisfies your alimony obligation. See a good accountant.

Gary Moore, Esquire

Hackensack, New Jersey

Re: Lump Sum Alimony Payment

I would need to consult a tax expert (CPA or Lawyer with specific tax expertise like LLM in taxation) but this may also depend on the manner in which it was defined in the Property Settlement Agreement (PSA). Did the PSA state that it was a lump sum deductible to you and taxable to her under the Internal Revenue Code? Since we do not known the lenghth of the marriage and the potential for alimony, it's more difficult to evaluate whether it's worth pursuing. If it was a longer term marriage --the longer the marriage and difference in economic dependency, and other alimony factors under the statute and cases--the greater generally the likelihood of alimony. Was the amount reduced to present value? I agree with my fellow Law Guru that you should have an accountant familar with the tax issues involved look at the PSA and the IRS determination--also call the lawyer that advised you to do the settlement. However, if there is a quid pro quo and the PSA spells out your undersatnding regarding tax consequences you may be entitled to some relief--the question would be would she have the assets to compensate you if there is a mutual mistake--would it be worth oaying to get relief from the judgment incorporating the PSA? These items should be expored with tax experts before signing the deal. Maybe that was the case and the IRS is wrong. We cannot say from the brief exposition of the details here. Good luck.