Alimony and Taxes

There are many heated issues that can arise during divorce proceedings, from child custody battles to division of assets. However, one of the most contentious issues that arises in most divorce proceedings is the issue of alimony. Alimony is a payment made by one spouse to his or her ex-spouse to help that party maintain the standard of living that he or she enjoyed while married.

If you are paying or receiving alimony, it is important to research how to handle these payments responsibly, including how taxes will affect alimony that you pay or receive. If you have questions about alimony and taxation, contact a Houston spousal support attorney of Garg & Associates, P.C., today at 800-242-2151 to schedule an initial consultation.

Who Receives Alimony?

Final alimony payments may be settled between spouses and their attorneys. They will typically be based on many factors, such as incomes, duration of the marriage, and reason(s) for divorce. If an agreement cannot be reached, the case will likely go to court.

Taxation of Alimony

Once alimony payments begin, they will be taxed. If you are making alimony payments, you may exclude the payments from your gross income. However, if you are receiving alimony, then it is considered part of your income and therefore will be taxed.

Contact Us

There are many financial issues that must be resolved in divorce, and it is important to both understand your rights during the divorce process and how the divorce will affect you in years to come. For more information, contact the Houston alimony attorneys of Garg & Associates, P.C., at 800-242-2151.