California Divorce Attorney: Spousal Support and Taxes
Understand the Tax Implications of Alimony. Call 619.497.0070 Today.
One of the most common concerns spouses have involves whether they will have to pay, or whether they will receive spousal support. A related question: "Is alimony tax-deductable?" The short answer is yes, depending on how the court-order or marital settlement agreement (MSA) is structured. IRS rules are complex and you should get help from a qualified family lawyer.
At the San Diego, California, law office of Robert M. Garland, I have spent over 16 years helping individuals and couples just like you understand and resolve their divorce concerns. Contact my law firm to learn more about how spousal support can impact your life moving forward.
Tax Implications Involving Alimony
While spousal support is taxable to the person receiving — and deductable by the person paying — other details will depend on your situation. Unlike child support, required payments to support a spouse are not predictable. When alimony is granted there are general requirements for it to be treated as spousal support for tax purposes:
- Marital settlement agreement (MSA) can designate support as family support, which is fully deductible but must be carefully structured.
- Only periodic payments qualify as spousal support, not lump sums
- Alimony does not continue after either spouse dies
- Family support payments cannot depend upon a child's age
MSA property arrangements and third-party payments also impact what is considered support and whether tax deductions are allowed or taxable income is reported. Which spouse owns a home, which one pays for it (mortgage, utilities, insurance, repairs and taxes), or if they jointly own a house can all affect tax liability.
It is also important to keep in mind that if the MSA requires payment of child support and spousal support but the payments are less than the total for both, they first apply toward child support until that obligation is fulfilled, before any money goes towards spousal support.
Call Divorce Attorney Robert M. Garland Today at 1-866-690-0179
As a certified family law specialist* I have the skills and experience to know the factors that influence how much spousal support is to be paid or received. With my help, you will understand what important divorce matters you should considered when drawing up your marital settlement agreement or preparing for court.
Contact me for a free telephone consultation about your tax and spousal support concerns. I offer competitive fees, accept all major credit cards and convenient payment plans may be available.
