Tax Year Prior to 2020: Marriage Settlement: ex-wife has car, I am paying $392/month on her car, how do I claim a tax credit?

[boardroy]

Alimony stopped when she married (Oct, 2015); however, I continue to pay on her car.

I have been told that there is a way to claim this.

[KarenL2 · Accepted solution]

There are more details needed to give you a complete response.  In general, Alimony can be items that are paid for on behalf of the ex-spouse under certain conditions, and those items could be deductible.  For example, if an item (or cash) is not considered child support and the divorce decree doesn't say it's "not" alimony it could be claimed.  This may be why you were told by someone else that you can claim the car payments.

That said, if the car payment was not part of the divorce settlement, it is not deductible at all.  

Also, if the car is in your name (you are the owner of record), then you are paying to keep up property you own and it's not deductible in that case either.

The other main concern is whether or not all items in the divorce decree state that they are to be stopped upon her remarriage.  In that case, the car payment again would not be deductible, even if it was considered "alimony".

This link has more details if you want to check it out IRS Pub 504 Divorced or Separated Individuals .

[boardroy]

MSA states, "[Car] is [her] property." I continue to pay the car payment. Does this help specify the issue?

[KarenL2]

Thanks.  If so, it could be considered Alimony OR a division of assets.  If you are still paying due to a division of assets, then it's not an Alimony type of item.  However, there is still the issue of whether "Alimony" stops when she remarried.  I can research it further to see if I find anything that addresses this.  Are you required to pay until it's paid off?  If so, it's likely a division of assets item.

[KarenL2]

Also, you may want to consult the divorce attorney to interpret how the Settlement reads with regard to the car payment.

[boardroy]

Indeed, I am obliged to pay in full.

[KarenL2]

Sorry to hear that. I figured that might be the case since you said you were still paying.  Definitely sounds like a division of assets.