I received a partial settlement from my divorce last year and will be receiving the rest this year as my ex and I have agreed. Do I need to pay taxes on this money? He had gotten on his own name, a home equity loan (my name has not been included in this).
Estate Planning Attorney
You most likely do not need to pay taxes on the funds you are scheduled to receive pursuant to the divorce settlement. A money award received as compensation for property going to the ex-spouse is not txabale income. On the other hand, if the money you are receiving is described as "spousal support" in the judgment, then it probably would be taxable income to you. You should review the judgment terms to determine whether the money award to you is described as "spousal support." Good luck.