Spousal support is a huge piece of the post-divorce lives of the people that ended their marriage. It isn’t guaranteed to be involved in any given divorce, but when it is, there are a number of important matters that the two spouses need to consider.
So let’s review these three critical points one by one:
- Taxes. Spousal support payments have a massive tax implication for both spouses. The spouse that receives the payments must include that money as part of their taxable income. The spouse that pays, meanwhile, can deduct those payments from his or her taxable income.
- Recordkeeping. When spousal support is paid, it is crucial for both spouses to write down or electronically keep track of the relevant information related to that payment. This means keeping records of the basics, such as the payment date, the addresses used for mailing, the amount of the payment, and the bank used for the payment. You should also include other added info, such as a carbon copy of the check if possible, the bank account type, and any delays in payment. If checks aren’t used, the two of you should meet up and create a paper receipt (signed by both of you) to denote that payment took place.
- Maintenance. You should keep these records for at least three years, and longer for your tax filings. This information will be very useful in case of any litigation in the future.
Source: FindLaw, “Alimony Guidelines: What Records to Keep Regarding Your Alimony,” Accessed April 19, 2018