The U.S. House of Representatives has passed its version of the tax reform bill that was supported by most of its Republican members. It has now moved to the Senate. The Senate's current version of the bill, however, contains some significant differences.
If your divorce agreement requires you to pay alimony to your ex-spouse, one good piece of news is that it's likely tax deductible for you. However, the Internal Revenue Service (IRS) has specific requirements for alimony payments to be deductible.
One of the factors that is present in some divorces, but not all, is the possibility of spousal support. There are many different considerations that go into the order for these payments. Whether you are the party requesting the support or the party who might have to pay, you should understand some of the factors that might impact these payments.
If you are going to be paying alimony as part of your divorce agreement, it's essential to understand how the Internal Revenue Service (IRS) views alimony and how you can make the most of the tax deduction you can receive for these payments.
Getting divorced is widely considered to be a stressful process, to say the least. Not only does the entire process trigger painful emotions, but it also requires an in-depth review of marital property intended for fair property division. If you have been a stay-at-home spouse, then getting divorced can adversely affect your daily source of sustenance. As an unemployed or underemployed spouse, getting alimony is no longer a distant thought, but an immediate possibility with the aid of a considerate Judge.
Nearly every aspect of divorce is stressful or emotionally draining in some form or another. If you have been unemployed, underemployed, or a stay-at-home parent for a while, one overwhelming aspect of divorce might be how you will provide for yourself and/or your children. Spousal support or alimony may be ordered by court to help compensate you if you are at a financial disadvantage, but you probably have many questions about how alimony works and how it will affect you.