USA Tax on Cash divorce settlement

May 20, 2012
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My ex offered me $135,000 u.s. dollars. in cash.for.divorce settlement. He has to take out a loan to get money and will pay me lump sum. In 2013, will I have to pay taxes on that? Option 1-I put all I investment account and receive monthly amount to survive because I don't work. Pay taxes?
Option 2-just put in my regular savings and deduct what I need monthly. Pay taxes?

If I have to pay, will I claim the whole 135000 for 2012. then what if I don't spend a ll, do I have to claim.what remains each year?



VIP Member
May 12, 2011
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United States
Time out. Since you don't work and this is all you will have you better get some professional tax advice. If the payment is considered alimony then it's taxable to you. If child support - no. And there are lots of other scenarios besides those two . So - point is at a minimum you need professional tax advice and probably a divorce lawyer , who can help search for hidden assets, if any. You get one shot at the divorce agreement so make it a good one.

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