My ex was ordered to pay me $50 per paycheck and 25% of quarterly bonuses to satisfy $25,000. The $25,000 was for debt in my name that is listed in decree I.e. taxs owed, student loans, business loan, and home equity loan. It says exactly defendant agrees to pay the following debt and indemnify and hold plaintiff harmless therefrom: then lists the four items above and the states payment terms from above. I just need to know if this can be considered income the money he pays me monthly?
Chapter 7 Bankruptcy Attorney
For income tax purposes, this sounds like a division of property rather than income, but for bankruptcy purposes, I would include it as income. It would help to know the context for which you need to make this distinction. Hope this perspective helps!
Estate Planning Attorney
Ms. Bunce is correct. The context within which to need the answer is important here. If this is for your tax return versus bankruptcy proceeding, the answer varies.
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