Divison of marital assets income

[wiscgirl]

What is the name of your state? SC
My husband and I are seperated (2/05). He retired from the military (4/05). He sends me 50% (after taxes) of the retirement pay he receives as divsion of the marital assets. Since he receives the income and pays the taxes on it do I have to claim this income? We will not be filing joint for this tax year (2005).

 

[Snipes5]

If you are separated, it is considered a gift, unless it is ordered by the court, and then it may be considered Alimony, which is taxable to you, and deductible for him.

Keep in mind though, that until there are legal documents requiring alimony, all he is giving you is a gift. It is neither taxable nor deductible.

If you are entitled to 50%, and meet the 20/20/20 rule, the gov't will automatically send the money directly to you if it is awarded by a court.

You will want to consult with an attorney familiar with military divorce issues.

Snipes