Quote Quoting asa_jim
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Payments to a third party, such as a mortgage company, on behalf of an ex-spouse that are ordered by the court can be considered alimony. That would make the payments deductible on your tax return. However, payments credited as payment of principle might actually be considered payment of property division obligations, depending on how the order is drafted. In that case, only the interest would be alimony. Property settlement payments are not deductible. You need a good tax advisor - in my experience most family law attorneys know little about tax law.

Correction, alimony is not a "deduction", it is an "adjustment". But in fact it is deducted from your income in lay terms.
Payment of interest on a mortgage is NOT automatically alimony...and in this guy's case, its very clear that what they are doing is property settlement, not alimony at all.

Quote Quoting Mike_8976251
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Well, to be clear, I'm not planning to do anything, this was a proposal the opposing counsel made that I'm trying to understand the pros and cons of. The intention is that she lives in the home and gets "credit" for the entire value of the home in our division of assets (including all equity). I will be responsible for the remaining debt on the loan. The same would be true for the auto-loans. What I get in return is a much larger portion of our investments and securities, which is my preference. What I don't understand are the mechanics of how their proposal would work, and what the potential tax consequences or advantages are to me.
I do not think that you are going to find a lender that is on board with that. You can give her a quit claim deed and take responsibility for making the payments on the existing loans, but I doubt you could find a lender to give you a new loan in your name, when you won't have any ownership of the property.