# Taxable or not....



## lonelytree (Feb 28, 2008)

A couple gets divorced. Judge rules that the husband gets to keep the house. He has to pay the wife out over 3 years with a balloon payment at the end.

He gets the home and payments of $2000 a month.

Home is assessed at $400K. Note is $300K.

Wife is still on mortgage and deed.

He can't refinance due to bad credit and not enough income.

He paid the ex-wife $9K in 2012. He sent her a 1099. 

Is this taxable income or not?

Thanks,
Mike


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## Michael W. Smith (Jun 2, 2002)

I'm by no means an accountant or tax person, but I would say it's not taxable. 
The wife and husband owned things jointly, the husband is keeping the house - he is paying the wife her share of it. It's not income.


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## ozarkchaz (Feb 4, 2005)

Proceeds from a Court judgement are generally not taxable. (Excluding Alimony).

Consult a Tax C.P.A. :thumb:


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## RonM (Jan 6, 2008)

Alimoy is taxable, child support is not.......


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## boxwoods (Oct 6, 2003)

It's not income unless there is interest or profit in that amount.


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## lonelytree (Feb 28, 2008)

RonM said:


> Alimoy is taxable, child support is not.......


Not child support.

Not alimony.

This is a court ordered property settlement.


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## Joshie (Dec 8, 2008)

Wife needs to get lawyer, like yesterday, to get her name off the mortgage or her credit is bound to be ruined. Knowing hubby had bad credit, I'm not sure why anyone would agree to this settlement.


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