Dick and Jane Are Divorced in 2013

question 93

Essay

Dick and Jane are divorced in 2013.At the time of the divorce,Dick had a lawsuit pending.He had filed suit against a former employer for overtime pay.As part of a divorce agreement,Dick agreed to pay Jane one-half of the proceeds from the lawsuit.In 2014,Dick collected $250,000 from the former employer and paid Jane $125,000.What are the tax consequences for Dick receiving the $250,000 and then paying Jane the $125,000?

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Definitions:

Extremely Low Scores

Results that are significantly below the average range in assessments or evaluations.

Bar Graph

A graphical representation of data using bars of different lengths or heights to compare values across categories.

Standard Deviation

A computed measure of how much scores vary around the mean score.

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