Unearned Income and Tax

[LisaDW]

My stbx offered a settlement of $1,750/month spousal support and $10,000 cash.
How much income tax would I be paying? Can I put the $10,000 someplace safe so I won't be taxed?
I'm 58 years old married 30 years. He is keeping his practice and his LLC (medical building). I know I'm mgetting screwed but do not have enough money to fight back

 

[Proserpina]

I'm not sure anyone can help you circumvent tax laws - alimony and spousal support (whether paid as a lump some or not) are taxable income to the recipient.

Your ex can take the tax break, and you will have to declare it as income.

 

[army judge]

My stbx offered a settlement of $1,750/month spousal support and $10,000 cash.
How much income tax would I be paying? Can I put the $10,000 someplace safe so I won't be taxed?
I'm 58 years old married 30 years. He is keeping his practice and his LLC (medical building). I know I'm mgetting screwed but do not have enough money to fight back

Hello, madam, you need a lawyer.

Don't waste your time saying you can't afford one, hello!!!!

See a lawyer tomorrow, a very good lawyer, the best that hubby's money can buy!

In your state, your lawyer can get your husband to pay YOUR legal expenses.

Your husband is a medical practitioner, too!!!!

Madam, you're killing yourself.

Don't accept a dime of this measly pay off.

A GOOD lawyer can get you at least $4,000 a month in spousal support, if not double that!

Your pay out should be NO LESS than SIX FIGURES, too!!!!!!

Again, get to a lawyer tomorrow.

Don't accept anything or sign anything.

Get to a lawyer tomorrow, a good lawyer!!!!

 

[Proserpina]

AJ - we have NO idea what the husband's actual income is.

Owning an LLC (even a medical LLC!) - yes, even in CA - does NOT equate to being a millionaire. He's also not stupid.

We can't give her false hopes like this....but that's probably moot, since whatever she gets is taxable income anyway.

 

[army judge]

AJ - we have NO idea what the husband's actual income is.

Owning an LLC (even a medical LLC!) - yes, even in CA - does NOT equate to being a millionaire. He's also not stupid.

We can't give her false hopes like this....but that's probably moot, since whatever she gets is taxable income anyway.

Proserpina, you could be right.

I reread her posts several times.

I interpreted (interpolated) her post to say that her STBX is a physician and owns a medical building.

I deduced that her STBX is a physician because she said he has a practice and owns the building through his LLC.

Having operated my own law practice for some years and owning a professional building that rents out space to other attorneys, I may have read too much into my conclusion.

Nevertheless, no one should accept any settlement without first vetting the agreement through their own attorney.

I don't suggest that just to help attorneys make money, trust me, a good attorney can do well without referrals.

But, I'd be remiss to suggest that an agreement I've never seen is good or bad.

I can say from experience that some attorneys construct agreements toward the benefit of their own client, not the other party.

It seems like a broken record some times, but many of these questioners desperately need attorneys.

In this case, the OP should consult with an attorney before agreeing to anything.

In a day or so, a good attorney can advise her if there is merit is seeking a higher alimony payment and settlement.

I never want to instill false hope in anyone.

That said, I don't want people to sink into despair thinking that the offer in hand is the best offer they can receive.

Why?

Because, more often than not I know it isn't from past experience.

You and I put a lot of time into this board because we hate to see people get screwed.

We all do what we can to help others.

Sometimes the message isn't what the poster wants to hear.

That is why I'm glad to see others chime in and offer their points of view.

I only hope and pray that in the end the poster is provided with options and honest answers.

I only wish there was more I could do to help them.

All I can say is that my heart is in the right place.

It wouldn't cost her a dime to discuss her options with an attorney.

It just might make a big difference in the rest of her life.

 

[LisaDW]

He is a physician and owns the medical building he practices in as an LLC.....and yes, he rents out the other 2 floors to medical labs.
He says his income is now $0, but he lives a comfortable lifestyle. He has not produced any discovery. The settlement says we 'have chosen not to exercise our rights to discovery. The parties understand that by failure to engage in discovery either one may not fully appreciate the full extent of the assets and debts and understand the lack of knowledge may mean that the division of property is not equal, the level of support provided may be less then fully available under law or that either one may not have received the optimum settlement to which they are entitled.'
I think that means he is hiding something but I want this divorce over with.

 

[Proserpina]

I think this OP's posting history is important.

And I think that this OP really, really, REALLY needs to do whatever it takes (legally) to get an attorney.

Please Lisa - take it from us. You can't afford NOT to get an attorney here.