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Third Circuit Upholds Deductibility of Pendente Lite Support Payments
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| In Kean v. Commissioner of Internal Revenue, a case handled by Jeffrey M. Garrod and Eugenia Yudanin, the United States Court of Appeals for the Third Circuit upheld the deductibility of unallocated pendente lite support payments as alimony. The Court found that under New Jersey law, a pendente lite support order does not survive the death of the payee spouse. Therefore, the order does not impose on the payor spouse an obligation to continue such payments after the payee’s death, and the payments qualify as “alimony” under Section 71(b)(1) of the Internal Revenue Code of 1986, as amended. |
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