What Do I Need to Know Before Divorce?

For now, alimony is tax-deductible for the paying spouse and constitutes taxable income for the supported spouse. This is one of many reasons that it's important to keep adequate records if you're paying or receiving alimony. Note that under the 2017 Republican Tax Bill, beginning January 1, 2019, individuals paying alimony will no longer be able to deduct their payments for tax purposes, and supported spouses won't have to include alimony in their gross income.

Until 2019, this point cannot be over-emphasized. Frequently after a divorce, the spouses dispute, or the IRS challenges, the amounts that were actually paid or received. Without adequate documentation, the payer may lose the alimony tax deduction or be ordered to pay back support if the other spouse makes a claim in court.

Here are the records each party to the divorce should keep:

Alimony Payer: The person paying alimony should keep

• A list showing each payment (date, check number, and address to which the check was sent)
• The originals of checks used for payments (keep in a safe place, such as a safe deposit box) -- be sure to note on each check the month for which the support is being paid, and
• If you pay in cash, receipts for each payment, signed by the recipient.

Be sure to keep these records for at least three years from the date you file the tax return deducting the payments. Some lawyers and tax advisers say you should never throw away these types of records.

Alimony Recipient:The spouse receiving support should make a list that shows each payment received. Include the following information

• Date payment was received
• Amount received
• Check number or other identifying information (for example, the number of the money order)
• Account number on which any check is written
• Name of bank on which check is drawn or money order issued
• A photocopy of the check or money order, and
• A copy of any signed receipt you give for cash payments.

Finally, if you secure an alimony order but your spouse refuses to make the required payments, take immediate legal action to enforce the order through a "contempt" proceeding or an "earnings assignment order." Orders to pay monthly alimony have the same force as any other court order and, if handled properly, can be enforced with the very real possibility of obtaining regular payments. If necessary, a court may jail a reluctant payor to show that it means business.

To learn more about alimony, see the Alimony section on DivorceNet.com (a Nolo network website dedicated to Divorce and Family Law topics). Nolo's Essential Guide to Divorce, by Emily Doskow (Nolo) is another great resource.