Opinion ID: 1279369
Heading Depth: 1
Heading Rank: 2

Heading: did the trial court fail to take into consideration the tax ramifications of the property division?

Text: In its decision, the trial court specifically stated that it was spreading payments of $228,425.72 (forty-five percent of the net value of the 100,000 shares of Tolley International) over ten years and one month for tax purposes. This qualifies the payments as periodic payments under 26 USCA, sec. 71(c) (2). Such periodic payments are included in the wife's gross income, and deductible by the husband. 26 USCA, sec. 71 (a). In Wetzel v. Wetzel, 35 Wis.2d 103, 110, 150 N.W.2d 482 (1967), the court said that while tax considerations are not controlling, the court should be aware of the tax consequences of any proposed property division: Disregarding the effect of taxes may result in an unrealistic and unjust result. We do not hold the trial court must adopt as a solution a method which produces the least amount of tax for the husband or for the wife, but in arriving at a determination of the business side of the divorce the tax impact is a consideration which permeates the whole process . . . . How the arrangement or division works out in reality after taxes is a test of fairness. 35 Wis.2d at 110. [3] The trial court clearly did take account of the tax consequences of the award. Mr. Jost gained a substantial tax advantage in being able to deduct his payments on his tax return. We are satisfied that the arrangements made by the trial court fully met the test of fairness discussed in Wetzel. We find no abuse of discretion in the trial court's method of payment.