Recent Developments

Individual Entitled to Deduction for Rehabilitative Alimony 

An individual was entitled to an alimony deduction for payments made to his former wife because he was not required to make the payments after her death under state (Tennessee) law. The payments made to her were alimony and were not part of a property settlement. State law contained a statutory preference for rehabilitative spousal support and transitional spousal support. 

The couple's divorce decree contained a detailed division of the property of the parties and the decree provided for payments to the spouse over and above the property division. She was not in a position to support herself, the property provided for her in the decree was subject to debt, and she was accruing monthly expenditures. In addition, she had no means of support other than the nominal amounts she was earning, which fell far short of her obligations and incurred expenses. 

Thus, the payments were designed to temporarily rehabilitate her financial situation and to give her time to become financially self-sufficient. Finally, it was highly unlikely the payments were part of a property division since they were not conditioned on the sale of any property.

M.W. Bedwell, TC Summary Opinion 2008-139

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