Case: Hedge fund proprietor’s obligation to demise of divorced partner as property settlement, not alimony (eighth Cir.) (IRC §71)

Aug 5, 2022 at 5:00 am

Alimony deduction denied for deferred cash payments from ex-husband to ex-wife under a dissolution agreement, which provides that the ex-wife “is entitled to any right to . . . perpetual spousal support” where state law provides for the payment of estate payments, the Eighth Circuit Court of Appeals held. The husband and wife’s marriage contract stipulated that the husband would make payments for his interest in a hedge fund over a number of years. The agreement made no mention of whether the payments would survive the wife’s death and noted that the wife waived spousal support as she did not need to maintain her lifestyle. The husband claimed the payments were alimony. …

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