Alimony and separate maintenance payments are deductible from income by the payor and includable in the income of the payee. 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. Attorneys should encourage interactions between clients and tax preparers to improve the likelihood of fulfilling the IRS documentation requirements and correct tax form preparations.
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!