Under Internal Revenue Code sec. 71, gross income includes "amounts received as alimony or separate maintenance payments." "Alimony or separate maintenance payments" has several defined characteristics, one of which is "such payment is received by (or on behalf of) a spouse under a divorce or separation instrument." IF classified as such, it would be income to you and he would get a deduction under sec. 215.
On the other hand, if there is no written document, transfers of property (including cash) between spouses or incident to divorce are not a taxable event under sec. 1041. If I understand your post correctly, it sounds like this latter section applies to you. So you should not have to claim the $25K as income.
You can see the code sections at -- http://www.fourmilab.ch/ustax/www/contents.html
This answer or response should not be considered legal advice, and does not create an attorney-client relationship. If you have further questions, I would be glad to discuss your situation further. I can be reached at US - (801) 746-6300, or online at -- http://www.lewishansen.com/attorneys/robinson.html
Sounds like this was part of the asset settlement - if so it would not be taxable becasue it was already something that you "owned" or had "earned" during the marriage and was simply being divided between you as part of the divorce settlement. Any tax liabiliy would be associated with the earning of the asset (wages, interest, etc.) not in your receiving your portion.
Evan A. Nielsen is licensed to practice law in California. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney.
Under Internal Revenue Code Section 1041, transfers between spouses are not taxable, even in separation or divorce proceedings.
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