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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Family Law
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I am recently divorced (2013 and my settlement was in the form

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I am recently divorced (2013 and my settlement was in the form of cash and an IRA. I am currently unemployed. Do either of these get reported as income for me in 2013? If not do I show no income for 2013 for the purposes of applying for health insurance through the affordable health care act?
Hi,

My name is XXXXX XXXXX I'd be happy to answer your questions today.

An equitable property distribution that occurs as part of a divorce is not considered income. Earnings on those assets, such as interest is. Alimony is also considered income. Take a look at the divorce decree to verify whether the cash received is being treated as alimony. Funds in an IRA are not considered income as long as they are in an IRA - once you withdraw them, they are taxable to you and treated as income. So, if you take a lump-sum distribution from the IRA rather than rolling it over, that is reported and treated as income.

If you have any questions or concerns about what I've written, please reply so that I may address them. It's important to me that you are 100% satisfied with the service I provide. Otherwise, please rate my service positively so that I get credit for answering your question. Thank you.
Customer: replied 3 years ago.

Thanks,


 


So since i am unemployed, is it right then to show no income for 2013 for the purposes of applying for health insurance through the affordable health care act? I've been living off of my settlement trying to get an online business rolled out which won't be producing revenue till next year.

Without seeing your entire financial picture, I can't state that you have no income. Unemployment compensation or a severance package would be reportable, for example, and so might interest income if you had any. But a property division from a divorce is not considered income.

You also would want to refer to your divorce decree to verify that the settlement received is not done as an alternative to alimony because in that case it is income.
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