Arthur C. Hawkins v. Commissioner of Internal Revenue, Glenda R. Hawkins v. Commissioner of Internal Revenue

EBEL, Circuit Judge.

These two consolidated appeals present the question whether husband or wife should bear the income tax burden of a $1 million pension distribution made to the wife pursuant to a marital dissolution decree. Resolution of this question turns on whether the marital settlement agreement incorporated into the parties’ dissolution decree constitutes a “qualified domestic relations order” (“QDRO”) within the meaning of section 414(p) of the Internal Revenue Code. 26 U.S.C. § 414(p). The Tax Court below held that the incorporated settlement agreement did not satisfy the statutory…