Cecil Frances Adler, Bankrupt v. John Nicholas, Trustee in Bankruptcy

DYER, Circuit Judge:

On November 6, 1964, the Bankrupt and her then husband entered into a written agreement entitled “Separation and Property Settlement Agreement.” 1 On November 25, 1964, the parties were divorced and the agreement was approved by the court and made a part of the final decree. On March 3, 1965, the Bankrupt filed her voluntary petition and was adjudicated.

Claiming that the sums payable to the Bankrupt under the agreement 2 were the proceeds of a property settlement rather than alimony, the Trustee filed a petition for an order to show cause why the funds should not be…