Legal Question in Family Law in Virginia
Payments from a Settlement
My ex wife and I signed our PSA in VA last fall. We agreed that she would remain in the house, I would move out, she would pay me 3 lump sums over a 3 year time period which would be equal to one-half of the 2006 tax value of the house. I received the first payment last August. However, my wife is attempting to deduct these payments from her amended 2007 taxes as ''alimony''. She apparently took a hit on selling assets to pay me. Nowhere in the wording of the PSA is ''alimony'' used, as I would never have agreed to that because of the tax burden. She is buying me out of the house with ''payments of''. She is attempting to pass a tax burden on to me. This was not discussed. The PSA requires me to sign over the deed to the house. Should I demand full payments (without tax implications on me) and then sign over the deed? Can she now call the payments ''alimony'' and get away with this? Was the tax burden on me from the very beginning?
1 Answer from Attorneys
Re: Payments from a Settlement
It's doubtful that the payments which you've described in your PSA could pass legal muster as "alimony", but the document should be reviewed by an attorney to determine for reasonable certainty.
And why should you agree to sign over the deed to the house before having received all of the monies to which you are apparently due? Afterall, a mere demand isn't the same as actually receiving full payment.