Year: 1953
Type: article
Abstract: MANY ATTORNEYS who are involved in divorce work appear to be so intent upon accomplishing their client's purpose of a speedy dissolution of the marriage bond that they are overlooking tax considerations involving rather sizable amounts of taxes, which considerations should constitute significant bargaining points in negotiations concerning property and financial settlements.In this article the writer hopes to acquaint the reader in a general way with the most important of these tax problems which arise in connection with divorce as well as the pertinent provisions of the Internal Revenue Code.The intention is to cover this matter in a practical manner without attempting to exhaust all phases of the subject.With this objective in mind then, this article has been subdivided into several sections, each dealing with one of the aspects of the subject of divorce and federal income taxes. TAx TREATMENT OF ALIMONY PAYMENTSPrior to the Revenue Act of 1942 alimony payments made to a former wife were not regarded as income to her, nor were they regarded as a deduction from income for the husband. 1 The Revenue Act of 1942,' however, added several provisions to the Internal Revenue Code, designed to make alimony and separate maintenance payments income to the wife and deductible by the husband, thus giving the husband some relief from the burden of swiftly increasing surtaxes.Section 22(k) of the Internal Revenue Code was one of the principal additions and is concerned with the matter of the inclu-*Member of the Minnesota Bar. 1.
Source: Minnesota law review
DOI: 10.24926/265535.3103
Author: Robert J. Johnson
Language: English
Topic: Family and Matrimonial Law
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3006023952