Payments to spouce?

[taman76]

What is the name of your state (only U.S. law)? PA

My question is concerning the IRS tax deduction and alimony.

My ex-wife and I divorced in 2001. In 1999 when we split I agreed to pay her 262.oo/ bi-weekly pay, in order that the money go to paying my half of our debts. I agreed to pay this for 10 years.

In our divorce papers, she had it written that this payment should be for 10 years and it is to pay off my half of joint debt accumulated before our divorce.

After now paying over 9 years I come to realize that I have paid her over 61,000 dollars. Our total debt was less than 20 thousand, including a car we had bought her not long before we split up, which she hasn't had now for maybe 6 years.

In the paper work it said that I cannot take a tax deduction for this payment because this is to be for debt payoff.

However, looking at the numbers, that means that there should have been more than 122,000 dollars applied to debt. Logic would state that if that was taking place, then the debt obligations would have been long met.

That means then the money she has been receiving has become income to her. In addition, though it isn't written, wouldn't this then become alimony? Would I then be entitled to a tax write-off for that? Would she then have to claim that as income tax?

Thank you for your help.

Dan

 

[Bali Hai]

What is the name of your state (only U.S. law)? PA

My question is concerning the IRS tax deduction and alimony.

My ex-wife and I divorced in 2001. In 1999 when we split I agreed to pay her 262.oo/ bi-weekly pay, in order that the money go to paying my half of our debts. I agreed to pay this for 10 years.

In our divorce papers, she had it written that this payment should be for 10 years and it is to pay off my half of joint debt accumulated before our divorce.

Why did you agree to this??

After now paying over 9 years I come to realize that I have paid her over 61,000 dollars. Our total debt was less than 20 thousand, including a car we had bought her not long before we split up, which she hasn't had now for maybe 6 years.

In the paper work it said that I cannot take a tax deduction for this payment because this is to be for debt payoff.

However, looking at the numbers, that means that there should have been more than 122,000 dollars applied to debt. Logic would state that if that was taking place, then the debt obligations would have been long met.

That means then the money she has been receiving has become income to her. In addition, though it isn't written, wouldn't this then become alimony? Would I then be entitled to a tax write-off for that? Would she then have to claim that as income tax?

Thank you for your help.

Dan

I doubt you can convince the IRS or the judge that this now becomes alimony.

Your ex-wife would make a fine used car salesperson!!

 

[Ohiogal]

What is the name of your state (only U.S. law)? PA

My question is concerning the IRS tax deduction and alimony.

My ex-wife and I divorced in 2001. In 1999 when we split I agreed to pay her 262.oo/ bi-weekly pay, in order that the money go to paying my half of our debts. I agreed to pay this for 10 years.

In our divorce papers, she had it written that this payment should be for 10 years and it is to pay off my half of joint debt accumulated before our divorce.

After now paying over 9 years I come to realize that I have paid her over 61,000 dollars. Our total debt was less than 20 thousand, including a car we had bought her not long before we split up, which she hasn't had now for maybe 6 years.

In the paper work it said that I cannot take a tax deduction for this payment because this is to be for debt payoff.

However, looking at the numbers, that means that there should have been more than 122,000 dollars applied to debt. Logic would state that if that was taking place, then the debt obligations would have been long met.

That means then the money she has been receiving has become income to her. In addition, though it isn't written, wouldn't this then become alimony? Would I then be entitled to a tax write-off for that? Would she then have to claim that as income tax?

Thank you for your help.

Dan

Nope. This was your mistake many years ago. It was agreed by you to pay this much for 10 years for debt. Hence it is NOT income to her. It is debt payment. Logic would state that you would have determined the over all payment over the ten years before agreeing to such a thing. You did not.

 

[IrishLady47]

And, what was the interest rate(s) being paid on the debt to the lender or lenders? In a ten year period, depending on the interest rate, payments could be double or triple the original amount.

 

[LdiJ]

And, what was the interest rate(s) being paid on the debt to the lender or lenders? In a ten year period, depending on the interest rate, payments could be double or triple the original amount.

I agree, interest would definitely make a significant difference.

I also agree with OG that its absolutely not alimony under the tax code.

 

[Bali Hai]

I agree, interest would definitely make a significant difference.

I also agree with OG that its absolutely not alimony under the tax code.

Was the "interest rate" addressed in the decree. If not there is NO interest rate!!

Let me see:

$10k was his share of the debt that he needed to pay off.

$262 X 260 bi-weekly periods in 10 years equals $68,120.

Not a bad "interest rate" for a $10k debt. I thought loan sharking was illegal in this country!!

I bought an item for $15k~ some years back and the loan period was 15 years. As I remember that the total payments amounted to $30k~.

Who do you think you're bullcrapping?!?!?

If a man took advantage of a stupid woman like this, you would be the first to scream UNFAIR!!

 

[Ohiogal]

Was the "interest rate" addressed in the decree. If not there is NO interest rate!!

Let me see:

$10k was his share of the debt that he needed to pay off.

$262 X 260 bi-weekly periods in 10 years equals $68,120.

Not a bad "interest rate" for a $10k debt. I thought loan sharking was illegal in this country!!

I bought an item for $15k~ some years back and the loan period was 15 years. As I remember that the total payments amounted to $30k~.

Who do you think you're bullcrapping?!?!?

If a man took advantage of a stupid woman like this, you would be the first to scream UNFAIR!!

Bali no one is saying it is "fair" however he agreed to it and should have figure it out beforehand. I have said the same thing to women who did the same thing. Agreeing to a bad deal doens't make it illegal. It just makes the one who agreed short sighted or not as brilliant as they would have thought.

 

[Bali Hai]

Bali no one is saying it is "fair" however he agreed to it and should have figure it out beforehand. I have said the same thing to women who did the same thing. Agreeing to a bad deal doens't make it illegal. It just makes the one who agreed short sighted or not as brilliant as they would have thought.

Well isn't that why we have judges review settlement agreements and approve them??

I'll guaranteee right now that if it was the woman who got a royal screwing like this guy did, the judge would have NEVER signed off such a reeediculous agreement!!

This just backs up lots of people's view, including mine, that the courts are looking out for women in divorce cases and if the man gets screwed, who cares?!?!?

 

[Ohiogal]

Well isn't that why we have judges review settlement agreements and approve them??

I'll guaranteee right now that if it was the woman who got a royal screwing like this guy did, the judge would have NEVER signed off such a reeediculous agreement!!

This just backs up lots of people's view, including mine, that the courts are looking out for women in divorce cases and if the man gets screwed, who cares?!?!?

WRONG Bali. I have seen women get treated the same way. next time you are in the Cleveland area i will buy you a drink okay? And we can talk about it.

 

[Bali Hai]

WRONG Bali. I have seen women get treated the same way. next time you are in the Cleveland area i will buy you a drink okay? And we can talk about it.

Ok, I'll look forward to that.

 

[Ohiogal]

Ok, I'll look forward to that.

Okay. And maybe when I -- a female -- spend my hard earned money on you, you will realize not all of us women are money grabbing beyotches and some are actually quite reasonable.

 

[taman76]

Update.

I spoke to my Ex and she said that the bills were paid off a long time ago. That she has been using the money as a supplement to her income. I talked to her about the amount she has received and asked her if she would accept that as payment for debt in full. I also read off the statement about the money being for my half of the debt.

She then said I should have realized I was over paying her and that she would use the money to live on, but that she would look into her finances knowing my payments are to end in 10 months and see what she can do to relieve me of some if not all of what remains.

Thanks for your help. yes I was stupid then. Looking back I felt manipulated and I was really hurting because I really never wanted the divorce in the first place, but she had a boyfriend on the side and wanted to try new things.

I asked what I did because I had the thought that maybe I was owed some tax refund and I didn't want to be caught being stupid twice on all of this.

Thanks again.

Dan

 

[Bali Hai]

Okay. And maybe when I -- a female -- spend my hard earned money on you, you will realize not all of us women are money grabbing beyotches and some are actually quite reasonable.

Well, I drink cheap beer, so your wallet won't be too hard hit.

Yes, I agree with you that not ALL women are like that, just the ones I've met.

 

[Bali Hai]

Update.

I spoke to my Ex and she said that the bills were paid off a long time ago. That she has been using the money as a supplement to her income. I talked to her about the amount she has received and asked her if she would accept that as payment for debt in full. I also read off the statement about the money being for my half of the debt.

She then said I should have realized I was over paying her and that she would use the money to live on, but that she would look into her finances knowing my payments are to end in 10 months and see what she can do to relieve me of some if not all of what remains.

Thanks for your help. yes I was stupid then. Looking back I felt manipulated and I was really hurting because I really never wanted the divorce in the first place, but she had a boyfriend on the side and wanted to try new things.

I asked what I did because I had the thought that maybe I was owed some tax refund and I didn't want to be caught being stupid twice on all of this.

Thanks again.

Dan

Hey Dan,

When you get this debt cleared up, I would like to show you some prime real estate overlooking the East River not far from Manhattan. It's within walking distance of Mid-Town.

 

[Ohiogal]

You cannot just stop paying her because there is a court order specifying your payments for a particular length of time> You quit paying without a court order relieving you of the obligation and you will find yourself in contempt of court.