Melissa Is Currently Working with Her Divorce Attorney on Her

Essay

Melissa is currently working with her divorce attorney on her impending divorce from her husband David. She recently discovered that she is pregnant with David's child. Melissa intends to keep and raise the child. David's attorney has submitted a proposal that David pay Melissa alimony of $1,500 per month. The proposed alimony contract satisfies the IRS tests for alimony. As a tax planner, what advice do you have for Melissa? Is there a way to structure the payments to minimize Melissa's income taxes?