Seems like a real estate lien may not be taxable to the person who the lien is against. (like a refinance) If the real estate that the lien was taken out on, was sold, it would also seem that the lien had to be satisfied. If he took out any kind of loan, and a lien was put on real estate, the interest on the loan can be deducted on the taxes. It may fall under gifting limits if it is not technically a support payment. That would probably best be answered by a CPA. Once you get the answer on that, the next question would be is he meeting the amounts laid out in the decree, and is he in contempt if he does not. To me, his reasons are his reasons, and the key for you is to find out if it is taxable, or if it is not. Once you find out, it is totally up to you to declare it, or not, but knowing what it is, would be the first step.