William O. Douglas

“ The burden of establishing error is not sustained by a divorced wife merely by showing that an obligation of her former husband might have continued despite the divorce. Since it is doubtful and uncertain under Texas law whether petitioner's former husband was discharged of his marital obligation by the settlement in question, petitioner failed to show that the presumptively correct determination that she was liable was erroneous. ”

“ Thus a property settlement made for the purpose of maintaining or supporting the wife may be treated for income tax purposes as mere security for the husband's continuing obligation dependent on such considerations as whether it contains, or is interrelated with, contractual obligations of the husband for her support ”

“ Several months after the divorce Mr. Pearce purchased an annuity from an insurance company for petitioner's benefit. The annuity provided for a payment of $500 per month during her life.
Neither petitioner nor Mr. Pearce included the $6000 received by her under the annuity contract in their federal income tax returns for 1935 and 1936. The Commissioner sent deficiency notices to both of them. Each appealed to the Board of Tax Appeals. At the hearing the Commissioner contended that the payments were income of petitioner. ”

“ There may be difficulty in placing a particular case on one side of the line rather than the other. But as stated by Mr. Justice Holmes in Irwin v. Gavit, 268 U.S. 161, 168, 45 S.Ct. 475, 476, 69 L.Ed. 897, 'That is the question in pretty much everything worth arguing in the law.' And see Harrison v. ”