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attorney fees awarded by court

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Bali Hai

Senior Member
State: New York

Are court awarded attorney fees payable to one party in a divorce settlement considered alimony for tax purposes?

Are court awarded attorney fees imposed as a sanction on someone for contempt of court considered alimony for tax purposes?

If the judgement is silent on the issue, can one presume that court ordered attorney fees payable to one party in a divorce settlement be considered alimony for tax purposes?

Need professional answers before April 15, 2006.

Thank you.
 


LdiJ

LdiJ

Senior Member
Bali Hai said:
State: New York

Are court awarded attorney fees payable to one party in a divorce settlement considered alimony for tax purposes?

Are court awarded attorney fees imposed as a sanction on someone for contempt of court considered alimony for tax purposes?

If the judgement is silent on the issue, can one presume that court ordered attorney fees payable to one party in a divorce settlement be considered alimony for tax purposes?

Need professional answers before April 15, 2006.

Thank you.
Click to expand...
No on all questions. In the first instance its part of the property settlement, and property settlements are not alimony for tax purposes. In the second instance they are a punishment for disobeying court orders, and could never be considered as alimony for tax purposes.

If a court order is silent on the issue of whether or not something is alimony....then it is NOT alimony.
 
LdiJ

LdiJ

Senior Member
abezon said:
Alimony is an amount regularly paid in cash or equivalent. These are 1-time payments.
Click to expand...
They are one time payments even if a judge allows them to be paid in installments. (just forestalling a question that would probably come next...lol)
 
B

Bali Hai

Senior Member
abezon Alimony is an amount regularly paid in cash or equivalent. These are 1-time payments.

LdiJ said:
They are one time payments even if a judge allows them to be paid in installments. (just forestalling a question that would probably come next...lol)
Click to expand...
If the court orders one party to pay cash to the other for services of an attorney subsequent to the filing of the divorce action, how can this be a "property settlement'?

Is this not cash income to the receiving party subject to taxation just like "alimony"?

Why should the payor be required to pay the taxes on awarded cash attorney fees and not on cash alimony?
 
B

Bali Hai

Senior Member
LdiJ said:
No on all questions. In the first instance its part of the property settlement, and property settlements are not alimony for tax purposes. In the second instance they are a punishment for disobeying court orders, and could never be considered as alimony for tax purposes.

If a court order is silent on the issue of whether or not something is alimony....then it is NOT alimony.
Click to expand...

Alimony in futuro is a continuing, but modifiable, support obligation to an economically disadvantaged spouse. See Tenn. Code Ann. § 36-5-101(d) (Supp. 1999). Alimony in solido is an unmodifiable lump sum award. See id. In the context of a divorce proceeding, attorney fee awards are considered as alimony in solido. See Herrera v. Herrera, 944 S.W.2d 379, 390 (Tenn. Ct. App. 1996).
 
S

Snipes5

Senior Member
Since you apparently have all the anwers, why did you bother asking?

Two and now three of us disagree with your interpretation.

Do whatever you like but do hope your position has at least a 33% shot at being accepted by the IRS, or there will be penalties.

Snipes
 
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