Ex-Wife Dies before annual alimony payment.

[LeaveNoDoubt2u]

What is the name of your state (only U.S. law)? California
I pay my ex-wife annual alimony pmt, due by 12/31 each year with 10% penalty if pmt was 10 days past 12/31. Per the divorce agreement, that is to continue until either party's death. Unknown to me, she passed away 12/14/08. Someone at her address signed for delivery of this payment on 1/6/09. Her estate attorney called to tell me I no longer had to pay monthly alimony payments and said my ex-wife was in debt and insolvent. My question is, based on what I have given you, does her estate attorney have any right to this annual payment or should it be returned to me as she passed before it was due.

Exact words in agreement are..."final payment is due in the amount of $___, with a 10% late charge if the payment is more than ten days late from the December 31st due date."
Thank you

 

[nextwife]

Is it paid in arrears or paid in advance?

 

[LeaveNoDoubt2u]

The agreement does not specifically stipulate advance or arrears. The language is under the heading of PROMISSORY NOTE/DEED OF TRUST. "Husband shal sign a Promissory Note in the amount of $xxx,xxx. The note shall be payable annually in the amount of $xx,xxx commencing December 31, 2003, and shall continue with annual payments of $xx,xxx until December 31, 2008, when the final payment is due in the amount of $xx,xxx with a 10% late charge if the payment is mor than ten days late from the December 31st due date."

 

[mistoffolees]

The agreement does not specifically stipulate advance or arrears. The language is under the heading of PROMISSORY NOTE/DEED OF TRUST. "Husband shal sign a Promissory Note in the amount of $xxx,xxx. The note shall be payable annually in the amount of $xx,xxx commencing December 31, 2003, and shall continue with annual payments of $xx,xxx until December 31, 2008, when the final payment is due in the amount of $xx,xxx with a 10% late charge if the payment is mor than ten days late from the December 31st due date."

There must be more than that in the agreement.

If that's all the agreement said, then you would still owe the money - since a promissory note would still be the property of the estate. I'm assuming that there's other wording that ends the payment on her death. What does it say?

 

[LeaveNoDoubt2u]

The paragraph that speaks to the death of either party is as follows: 2.6 "In the event support is not established prior to July 1, 2003, the court shall reserve jurisdiction over Wife's right to receive spousal support based on the above guidelines commencing July 1, 2003, and continueing until either party's death, the remarriage of Wife, further Court order, or April 30, 2009, whichever occurs first."

In another paragraph 2.7 "The Court shall retain jurisdiction over spousal support for the amount still owning on the Promissory Note referred to in Paragraph 2.1 until it is paid in full. In the even of default on the note, Wife may seek relief as spousal support."

If you need it, 2.1 states..."In order for Husband to be able to afford the equalizing payment to Wife, Wife has agreed to defer spousal support until July 1, 2003."

It sounds like there is a distinction between monthly spousal support and annual Promisory note, now paid in full with 12/31/08 payment?

 

[LdiJ]

The agreement does not specifically stipulate advance or arrears. The language is under the heading of PROMISSORY NOTE/DEED OF TRUST. "Husband shal sign a Promissory Note in the amount of $xxx,xxx. The note shall be payable annually in the amount of $xx,xxx commencing December 31, 2003, and shall continue with annual payments of $xx,xxx until December 31, 2008, when the final payment is due in the amount of $xx,xxx with a 10% late charge if the payment is mor than ten days late from the December 31st due date."

That doesn't sound like alimony at all...that sounds like a property settlement. If its a property settlement then the estate would be due the final payment, which is apparently what happened.

I certainly hope that you were not claiming the payments as alimony on your taxes, because if you get audited by the IRS you will be SOL. (I am a tax professional)

I also don't see any way that you could claim the money back from the estate with that wording. However you could certainly take all of your paperwork and go get a consult with a local attorney.

 

[LeaveNoDoubt2u]

Yes, the more I read into the document, it appears it is part of the estate and separate from the monthly payment. Yes, tax deductions, on my side, have been appropriately accounted.
Thank you very much for your helpfulness.