NHCaseLaw.com

Last week the New Hampshire Supreme Court explained what is not a "capital gains tax" under New Hampshire law, however it did not do much to clarify what is a capital gains tax. The divorce case involved an agreement between the parties that the husband would pay 50% of any capital gains tax incurred by the wife after the sale of certain income property they had owned jointly during the marriage.

The respondent, Linda L. Sawyer, appeals two orders of the Laconia Family Division (Sadler, J.) in these post-divorce proceedings. The first order interpreted the parties' divorce decree as requiring the petitioner, Robert A. Sawyer, to pay the respondent fifty percent of the federal capital gains tax she incurred as a result of the sale of two of the parties' properties. The second enforced paragraph 19H of the parties' permanent stipulation, which their divorce decree incorporated by reference. We affirm in part, reverse in part and remand.