In this weeks edition of Settlement Expert TV, Mark Wahlstrom is joined by Attorney Robert Wood to discuss the tax features and possible applications for the Allstate Structured Settlement Divorce product. This unique non-qualified annuity approach to spreading out the funds that are split between husband and wife in a marital property settlement will likely not have broad application immediately, but for certain divorce situations it could be a true problem solver.
The topics covered in this 11 minute update are how the taxes are reported under IRC 1041 regulations, the reason's why it is not used for alimony or child support cases, the tax issues planners and attorneys need to be aware of on divorce settlements and the situations where this might be useful. Essentially the non-qualified divorce settlement annuity would allow for one spouse to design a cash flow over time to the other so as to avoid dispation of the funds, or increasingly, to prevent the ex-spouse from being disqualified for Medicaid or other governmental benefits by having "too many" assets.
To learn more about how the Allstate structured divorce product work, you can contact Mark Wahlstrom at Wahlstrom and Associates and he will be happy to go over the details.