Edward and Jane are divorced in 2009.At the time of the divorce,Edward had a lawsuit pending.He had filed suit against a former employer for overtime pay.As part of a divorce agreement,Edward agreed to pay Jane one-half of the proceeds from the lawsuit.In 2010,Edward collected $100,000 from the former employer and paid Jane $50,000.What are the tax consequences for Edward receiving the $100,000 and then paying Jane the $50,000?

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The Answer of Edward and Jane are divorced in 2009.At the time of the divorce,Edward had a lawsuit pending.He had filed suit against a former employer for overtime pay.As part of a divorce agreement,Edward agreed to pay Jane one-half of the proceeds from the lawsuit.In 2010,Edward collected $100,000 from the former employer and paid Jane $50,000.What are the tax consequences for Edward receiving the $100,000 and then paying Jane the $50,000?

Edward and Jane Are Divorced in 2009