married2long
recently joined
Reged: 02/02/10
Posts: 11
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My qildro finally went though towards the end of 2010. Now I am getting half of the gross instead of the net. Problem is I have to pay back $1000/month in property division, which there was no property but just a way the judge found to let him keep his full pension. Now I am getting a 1099-r from the pension board and my taxable income is going to be $12K higher than it should be as I am paying him the $12K back. He is getting $12/K tax free dollars a year while I am forced to pay taxes on money I can not keep. Any suggestions? My lawyer sold me down the river, took my money and ran, useless. Please help.
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Avaya
Carpal \'Tunnel
Reged: 02/09/06
Posts: 9823
Loc: Arkansas
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You will get the 1099-R, but if you put the money into another qualified plan, it wont be taxable.
It doesn't sound like the QDRO and the $1000 per month property division are tied to one another so I'm guessing that the judge determined that you could pay the 1k per month without dipping into the retirement....which leads me to believe that you have property of some value that he did not receive. I say that in order to conclude that an argument that you cannot afford to put the QDRO proceeds into another qualified plan might not be valid.
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Eternity is too long to be wrong.
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married2long
recently joined
Reged: 02/02/10
Posts: 11
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They are not really tied to each other, in as much as I am getting half of the pension. The $1K I am paying back is more equal to maintenance but they chose not to call it that. There is no property. I bought him out of the house at 60% of the equity. Why they chose to call it property division, I do not know. What I do know is that is not fair for me to paying the taxes on $12K every year and he collects $12K tax free dollars. The judge never wanted me to get any of his pension and this is how he worked it out. He is already collecting his pension and it is taxed before I receive it. Nothing about this divorce was fair and I have worked hard to come to terms with the outcome. This tax issue is hopefully the last hurdle and I can move on. Just looking for any suggestions on how I can write off the $12K instead of upping my taxes $3200/year, while he saves $3200/yr.
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DedicatedDad
veteran
Reged: 09/05/04
Posts: 1318
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The tax law is clear. You can't change it. You can't write off the alimony, and you can't deduct the property settlement.
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Avaya
Carpal \'Tunnel
Reged: 02/09/06
Posts: 9823
Loc: Arkansas
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Are you saying that your payment of $1000 per month is the payment of your buying him out of the house? That IS a property settlement, it's not alimony.
Look at it like a house payment - you don't get to write off the principle payment you make to the bank...this is basically the same thing.
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Eternity is too long to be wrong.
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married2long
recently joined
Reged: 02/02/10
Posts: 11
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It absolutely is NOT payments to buy him out of the house. I had to buy him out of the house at the closing, and he received a check for 60% of the equity in the house. There is NO other property. Just the judges wording, it is really maintenance. Very unfair and now I am getting screwed on the taxes.
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DedicatedDad
veteran
Reged: 09/05/04
Posts: 1318
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I don't get why you are paying $1000/month in a property division, when he already got 60% of the equity up front. And, you explained you are paying HIM, so he could keep HIS retirement. This make absolutely no sense. There must be more to the the story.
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married2long
recently joined
Reged: 02/02/10
Posts: 11
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There is no more to this story. I just really got screwed. I should have appealed but my low life lawyer told me it would cost $35K to appeal and I had absolutely no money left and was scared out of my mind. The pension is his pension but since it was built up during the course of our marriage, I am entitled to half. Right now I am still working full time, with no pension of my own, collecting half of his pension but paying almost all of it back to him in what the judge called 'property divison'. He is not working, still retired. Is it possible to hire another attorney and go back to now address the tax issue caused by the qildro? He is also supposed to be giving me copies of his full tax return which he has not done. He gives me the front page of the return and nothing else. No 1099-r or anything. I am scared to death to go back into court and I would have to go before the same judge, that much I do know. It is still very hard to believe all that was taken from me but I was working hard to come to terms with it. I just wanted to get my taxes done and found out I can't write off any of the money I have to pay him in property division. How much can one person take?? Please if anyone has good advice or could even suggest a GOOD lawyer, please advise.
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DedicatedDad
veteran
Reged: 09/05/04
Posts: 1318
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Ok, so you are getting 1/2 his retirement. You inferred he kept all of it.
The house equity has already been split.
What exact "property" did you get, that you are paying $1000/month for, and for how long.
A judge can't order $1000 for nothing....and if they did, it would be in error....but you would have only had 30 days to object. It appears that time has long passed.
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married2long
recently joined
Reged: 02/02/10
Posts: 11
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What I thought I said was that I am getting half of his pension but I have to give most of it back in property division. This is exactly the case and there is no other property. I have to pay him back the $1K/monthly for 5 years. I know it is not right, never was and I do believe it shouldn't even be legal but any lawyer I talked to said it would cost me more in litigation than it would probably be worth. Therefore my main concern is finding a way to try and write off the monies I have to pay him back for virtually nothing. Since there was no ruling made for taxing after the qildro would have gone through, wouldn't it be possible to just bring that back before the judge? I wouldn't think that would cost too much?
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