Soltermann

The principal issue to be decided in this litigation is whether the monthly payments made to the defendant by her former husband were made in discharge of a legal obligation, which because of the marital or family relationship was imposed upon or incurred by the husband under a decree or written instrument incident to the divorce proceedings between the defendant and her former husband. If so, they are taxable as income to the defendant and the plaintiff must prevail.

It is defendant’s position that these payments were made in recognition of the defendant’s interest in a jewelry business started and developed through the joint efforts of defendant and her former husband and that the obligation was incurred in recognition of her property rights arising out of the business relationship between them.

Defendant relies heavily on the decision of the Supreme Court of Florida construing the separation agreement between her and her former husband as a property settlement agreement and holding that inasmuch as the decree of divorce was based thereon it, even though reciting that payments were for alimony, could not change the nature of the obligation.

If the sole question here was the…