payee The person who is to receive the stated amount of money on a check, bill, or note.
payee n. the one named on a check or promissory note to receive payment.
PAYEE. The person in whose favor a bill of exchange is made payable. and hereafter In the future.
The term hereafter is always used to indicate a future time—to the exclusion of both the past and present—in legal documents, statutes, and other similar papers. ”taxable/deductible”]. Child support is not taxable/deductible. (1) To qualify as taxable/deductible alimony, a stream of payments must be cash (2) received by or on behalf of a spouse (3) under a divorce or separation instrument (4) which does not tax bracket Tax Bracket
The rate at which an individual is taxed due to a particular income level.
Each income class is taxed at a different level. Generally, the more you make the more you are taxed. . Consequently, an unallocated payment order not only frees the parents from restrictive court instructions that domestic relations domestic relations. For psychological and sociological aspects, see marriage. For legal aspects, see divorce; husband and wife; parent and child. cases to encourage sensible cash-flow planning between separated spouses. If used correctly, the technique enables the parties to achieve a higher net transfer of funds to the payee spouse because the payor spouse, who is generally in a higher tax bracket, reaps an economic benefit from the larger Plantation, Florida This article is about the city in Broward County. For other uses of Plantation, Florida, see Plantation, Florida (disambiguation).
Plantation is a city in Broward County, Florida in the United States. , demonstrating a tax savings using family support.)
As to the code spousal support spousal support n. payment for support of an ex-spouse (or a spouse while a divorce is pending) ordered by the court. More commonly called alimony, spousal support is the term used in California and a few other states as part of new non-confrontational language (such and child support is all allowable as taxable/deductible alimony because it does not “fix” an amount for child support.
Florida courts have recognized this form of support. In DCA (1) (Document Content Architecture) IBM file formats for text documents. DCA/RFT (Revisable-Form Text) is the primary format and can be edited. DCA/FFT (Final-Form Text) has been formatted for a particular output device and cannot be changed. 2003), articulated that
unallocated support awards of alimony and child support have been approved in undifferentiated undifferentiated /un·dif·fer·en·ti·at·ed/ (un-dif?er-en´she-at-ed) anaplastic.
Having no special structure or function; primitive; embryonic. temporary alimony and support of $10,000 per month).
In Wallace v. Wallace, 605 So. 2d 504 (Fla. 4th DCA 1992), the court guidelines guidelines,
n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . (12)
Lawton v. Commissioner, T.C. Memo 1999-243, held child support guidelines do not fix a portion of an unallocated temporary award of support as “child support.” In Lawton, the court dealt with a Pennsylvania court’s temporary order “for support of spouse and one child” (unallocated temporary support for the wife and child). The court rejected the wife’s argument that a portion of the payments were not alimony taxable to her because all awards for support must pendency Pend´en`cy
n. 1. The quality or state of being pendent or suspended.
2. The quality or state of being undecided, or in continuance; suspense; as, the pendency of a suit s>. of the proceedings, or thereafter, shall cease upon the death of payee spouse. The problem arises when there must be reliance upon state law.
In Florida, case law holds that the obligation to pay permanent periodic alimony (spousal support) ceases on the death of the payee. (14) There is no authority in Florida as to cessation of liability for unallocated alimony and child support on the death of the payee. There is a major conflict of authorities concerning this issue.
Unallocated Alimony and Child Support Not Taxable/ Deductible.
Several cases in which the payment of family support did not qualify as taxable/deductible alimony are explored below.
Murphy v. Commissioner, T.C. Memo 1996-258, involved an award of family support in a California divorce. The Tax Court observed that the petitioner/ex-husband had the burden to prove that remarriage Re`mar´riage
n. 1. A second or repeated marriage.
Noun 1. remarriage – the act of marrying again or death of insufficient evidence insufficient evidence n. a finding (decision) by a trial judge or an appeals court that the prosecution in a criminal case or a plaintiff in a lawsuit has not proved the case because the attorney did not present enough convincing evidence. for us to find that the marital payments would not have survived the death of Diane Murphy before the majority of the children in her custody. Thus, Ronald Murphy has failed to prove a necessary element of section 71(b)(1), viz, the subparagraph (D) requirement of cessation on the death of the payee spouse, and, consequently, he has failed to prove that the marital payments are alimony within the meaning of section 71(b). (15)
Wells v. Commissioner, T.C. Memo 1998-2, also dealt with a California divorce. Citing Murphy, the court’s rationale that family support would not cease upon the death of the ex-wife because “assuming a Colorado Supreme Court The Colorado Supreme Court is the highest court in the U.S. state of Colorado. It consists of a Chief Justice and six Associate Justices. Powers and duties
Appellate jurisdiction would hold that temporary orders providing for child support payments, even when included within a general unallocated payment obligation, do survive the death of the recipient spouse.
Love joy bore the burden of proving that his obligation to make unallocated payments would cease upon his ex-spouse’s death. Because the divorce court orders are silent and Colorado law is at best unclear on the issue, and likely contrary to Lovejoy’s position, he has failed to meet his burden.
Gonzales v. Commissioner, T.C. Memo 1999-332, involved deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. to the husband for alimony payments because it ruled “New Jersey law would not necessarily have relieved Dr. Gonzales of his obligation to pay family support had [the wife] died before the divorce judgment” because he would not necessarily have been awarded custody of his minor children. In a bolstered bol·ster
A long narrow pillow or cushion.
tr.v. bol·stered, bol·ster·ing, bol·sters
1. To support or prop up with or as if with a long narrow pillow or cushion.
2. its opinion by referring to cases heretofore cited stating, “[t]his holding comports with our conclusions reached in prior opinions addressing the interplay in·ter·play
Reciprocal action and reaction; interaction.
intr.v. in·ter·played, in·ter·play·ing, in·ter·plays
To act or react on each other; interact. between section 71(b) and section 71(c) and their importance in distinguishing between alimony, child support and property settlement payments for the purpose of tax treatment.
The Tax Court analyzed an·a·lyze
tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es
1. To examine methodically by separating into parts and studying their interrelations.
2. Chemistry To make a chemical analysis of.
3. most of the foregoing cases: Both cases holding that the liability for payments of unallocated alimony and child support would not cease by state law upon the death of the payee, and those holding otherwise. (21)
The Berry court concluded that the liability for family support by a California court would terminate on the payee’s death while admitting that the cases dealing with California law are conflicting. Commenting upon the Wells decision, the court said:
We reject the notion that one must assume a worst case scenario (under which someone other than the payor spouse would take custody of the children upon the death of the payee spouse) in determining the applicability of the substitute payment clause of section 71(b)(1)(D) to an unallocated support obligation. Accordingly, we hold that a payor spouse’s general [s]tate law obligation to support his or her children, without more, does not cause any or all of that spouse’s unallocated support obligation to fail to qualify as alimony by reason of the substitute payment clause of section 71(b)(1)(D). (22)
Provide in Writing That Liability Ceases
The case authorities are admittedly in conflict. Unpublished circuit court opinions are not binding. Tax Court ordinarily or·di·nar·i·ly
1. As a general rule; usually: ordinarily home by six.
2. In the commonplace or usual manner: ordinarily dressed pedestrians on the street. are limited to that case, and although readily cited, are supposed to have no value as precedent. Only rulings from the Tenth Circuit (Lovejoy) and the Third Circuit (Kean) have real substitution Substitution
put her own son in place of Orestes; her son was killed and Orestes was saved. [Gk. Myth.: Zimmerman, 32]
robber freed in Christ’s stead. [N.T.: Matthew 27:15–18; Swed. Lit. for such payments after the death of the payee spouse.
Melvyn B. Frumkes is the principal of Melvyn B. Frumkes & Associates, P.A., with offices in Miami and
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