Case Summary:
In wife’s action to have certain debts declared nondischargeable under 11 U.S.C. § 523(a)(5), the court determined that a portion of the debts which the debtor was to have indemnified his former spouse from constituted obligations “actually in the nature of” alimony, maintenance or support.  The issue of dischargeability under § 523(a)(5) is a matter of federal law, not state law.  The court found that it was not possible to consider the debtor’s present financial condition or the changes in circumstance of both parties since the time of the divorce.  The purpose of the section was to look at whether the obligation was intended as support at the time of the divorce.  As a result, the court found certain obligations to have been contemplated as support, and others, including a debt to the wife’s mother, to have been intended as property division.

Statue/Rule References:
11 U.S.C. § 523(a)(5) -- Nondischargeability - Divorce Decrees

Key Terms:
Divorce Decrees -- Maintenance or Property Division