Question
Lump sum in lieu of alimony
Under a 2022 divorce settlement the husband must sell the condo he owned solely, that they lived in together, and pay the proceeds to his wife in lieu of paying alimony. I am aware that alimony agreed to after 2018 is no longer deductible or income. Also, that division of property in a divorce settlement is not taxable. However, does the lump sum aspect of this agreement change the nature of the payment so it might be taxable to the wife? I have seen several sources that say lump sum divorce payments are taxable?
