Conference quokka::non_custodial_parents

381.0. "Tax question on liquidated assets" by QUOKKA::19584::DIPIRRO () Thu Feb 15 1996 11:25

    	I apologize if this is covered elsewhere, but I didn't see it. Just
    point me to the appropriate place.
    	As part of my divorce settlement, I had to liquidate various assets
    and give her half. One example was a whole-life insurance policy that I
    had had for quite a long time. Now the policy was in my name only. So
    the check was paid directly to me. Of course, there were tax
    implications here, again in my name with my social security number
    only.
    	Now I had it stipulated in our divorce decree that with assets such
    as this which had unearned taxable income, we would each take the
    responsibility of half that income for tax purposes since we were
    splitting the cash value 50/50. She agreed to this.
    	Now I discover that she went ahead and filed her tax return without
    declaring any of this income. What I want to do is file my return
    declaring half the income as stipulated in the divorce decree, but I'm
    not sure how to do this since the income is actually all in my name
    with my social security number. Anyone know how I handle this?
    	Thanks.

    Just tell the IRS the policy was paid out because you died.
    There are no taxes due on insurance death benefits.
    
    Mike

    While you're at it, you could turn her in for failure to pay taxes
    on her share.  ;^}.
    
    fred();