Tax Issues When Divorcing

In addition to the difficult personal issues that divorce entails, several tax concerns need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. Here are four tax issues when divorcing that you should to understand. (1) Alimony or support payments For alimony under divorce or separation agreements that are executed after 2018, there’s no deduction for alimony and separation support payments for the spouse making them. And the alimony payments aren’t included in the gross income of the spouse receiving them. (The rules are different for divorce or separation agreements executed before 2019.) (2) Child support No matter when the divorce or separation instrument is executed, child support payments aren’t deductible by the paying spouse (or taxable to...