Alimony and separate maintenance payments are deductible from income by the payor and includable in the income of the payee.
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If modifications or substitutions are made (for example, granting a property to your spouse in lieu of scheduled monetary payments), both parties need to consider whether the transfer is still considered alimony for tax purposes.
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Attorneys should encourage interactions between clients and tax preparers to improve the likelihood of fulfilling the IRS documentation requirements and correct tax form preparations.
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If you have questions about alimony (spousal support), child custody, child support, uncontested divorce, separation, or property division, call our Greensboro Family Lawyers to schedule a consultation today!