Legal Question in Family Law in Virginia
Is It Alimony
Trying to determine if money my husband provides his ex-wife is alimony. Situation:
1. Separation/Property Settlement Agreement - dated Feb 15, 1990:
-Pay ex-wife 26% of US Civil Service Retirement Benefit due upon his retirement.
-Pay $300 spousal support to ex-wife until death or remarriage.
2. Final Decree of Divorce - dated Jun 10, 1991:
-Incorporated property settlement by reference.
-Nothing stated re CSRS benefits.
-Pay $400 spousal support to ex-wife until death or remarriage.
3. Consent Decree For Modification To Final Decree of Divorce Dated - dated Oct 18, 2002:
-In lieu of ex-wife receiving 26% of CSRS benefit, husband to pay directly to ex-wife $600 per mo upon retirement until her death and purchase $35,000 life insurance policy.
-Said sum NOT taxable to ex-wife.
-Did not say whether it was or was not alimony.
4. Ex-wife received no spousal support from remarriage to his retirement (for 10 or 11 years).
5. Husband retired in July 2003. Paying $600 per mo directly to ex-wife ever since.
Questions:
Is the $600 per month considered alimony?
If yes, should it be taxable to ex-wife?
IRS Pub 504 says it is both as it was executed after 1984 & meets conditions. IRS e-mail agreed.
Need legal opinion.
2 Answers from Attorneys
Re: Is It Alimony
It sounds as if this is not spousal support, but rather distribution of her marital share in your husband's retirement. You should probably consult with a family law attorney for further advice.
Re: Is It Alimony
The montly payment of a distributable asset is not alimony but both the PSA and FD mention a spousal support amount until death or remarriage and I didn't hear that provision was ever changed.
Good luck