My ex-wife and I were divorced in Germany. Since we both work for the US Army, the courts could not award alimony, so my lawyer drafted an agreement that I pay $9,900 annually to my former spouse. In 2005 and 2006, she failed to claim the amount on her tax return, and now I have been audited by the IRS. My question, is an agreement by my lawyer considered a written agreement for alimony? – John

Answer:

John: Your attorney or tax preparer is in the best position to argue the facts of your particular case with the IRS. But here are some general principles. In order for alimony to be deductible, payments have to be required by a written instrument incident to a divorce. That instrument can be a decree of divorce or a separation agreement. A person can authorize an agent to sign an agreement on their behalf. An attorney is an agent of the client.