Bankr. No.:
25-40157
Chapter:
7
Date of Decision:
December 31, 2025
Issue:
Whether the debtor's interest in an alimony award incorporated in a state court divorce judgment was property of the bankruptcy estate and subject to administration by the chapter 7 trustee?
Ruling:
Yes. The debtor's alimony award was property of the bankruptcy estate pursuant to 11 U.S.C. §541(a)(1), the debtor could not exempt it under S.D.C.L. §43-45-2(9) because it was a gross or lump sum and exceeded the maximum monthly amount of $750.00, and it was required to be turned over to the chapter 7 trustee for administration, though the debtor could timely amend and exempt the alimony under any remaining portion of her allowed exemption under S.D.C.L. §43-45-4.
Full Bankruptcy Court Decision:
