Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
did you look at my question?
Generally, no & no. Unless part of the settlement was from a retirement plan & she didn't keep it in one of her own plans, or it related to a house sale or some other taxable liquidation of assets, or a portion was alimony, then it wouldn't be taxable.
Can you tell me any more about the terms of the settlement or how it was funded?
well, some of the money is going to a condo, credit card debt and paying off a car
it breaks down to 130 for condo, 20k for the car and 15k for the credit card debt and the rest is cash
It doesn't matter where it is going, it matters where it came from.
its just a cash lump sum
Well, it shouldn't be taxable; if there were any tax consequences, they should have been spelled out in her divorce settlement agreement.
well everyone knows how divorces go....lol