The taxpayer's decree for divorce from his spouse provided that "instead of awarding her alimony payable in monthly instalments it is better to make an order, directing the applicant to pay the respondent the total sum of $20,000 to be paid in instalments" of $10,000, $5,000 and $5,000 at yearly intervals.
The payment of $10,000 was deductible because it was apparent, from an examination of the reasons for judgment of the divorce judge, that it was intended that the three payments meet the spouse's needs for a temporary period, and were not intended to effect a capital transfer. In addition "une allocation payable periodiquement peut être d'un montant variable."