QUESTION
Is an amount owed and paid to ex taxed to the recipient?
Asked on Jun 18th, 2015 on Divorce - Nevada
More details to this question:
My ex has not paid any money toward a our joint credit card debt. In the decree, he was supposed to pay half of the debt, but never did. Then in a motion, he was ordered to make monthly payments directly to the card, but never did. I finally paid it off to avoid finance charges. I want to avoid a judgment on his half since he has not paid any of his previous judgments. An option was that I could tack it on to the end of my spousal support. If I go with this, will I be taxed? Is there a way to word this in an order as "non-taxable?" How do we determine the payment amount? Is this considered a property settlement?
1 ANSWER
It is more complicated than can be properly explained in an e-mail, but under a couple of case precedents -- Siragusa and Martin -- yes, there is a way to expand spousal support to add in the debt. At least possibly. You have to move while the spousal is still being paid, and you will need documentation. And yes, alimony can be made either deductible or non-deductible under current rules. For greater detail, you really should confer with a family law specialist, in this or another firm.
Answered on Jun 19th, 2015 at 1:31 PM