On February 22, 1955, Meyer J. Fleishman and Joan Ruth Francis entered an antenuptial agreement. The agreement stipulated that in the event of a divorce, Meyer would pay Joan $5,000, who in turn would release all her rights to Meyer’s property. In 1961, Joan initiated divorce proceedings. In contravention of the prenuptial agreement, she sued for fair and equitable division of all property. However, the court overseeing the divorce proceedings lacked authority to invalidate the antenuptial agreement. Thus, in a separate action, Joan sued to set aside the antenuptial agreement. The divorce was finalized in 1962 and Joan’s suit to set aside the antenuptial agreement was dismissed. Meyer incurred $3,000 in legal fees defending the lawsuit to invalidate the antenuptial agreement. He deducted the fees as an ordinary and necessary non-business expense. The Commissioner (defendant) disallowed the deduction.