Divorce, Alimony and Your Taxes

In just 100 years, the divorce rate in America has increased by 2,325 percent, according to research obtained by the U.S. Census Bureau. At this time, the divorce rate is extremely high and it seems to be growing yearly. When you decide to file for divorce, you will have multiple items to consider such as child support, property division and alimony. If you are asking for alimony or have been asked to pay it, this will affect your tax filings.

Even though the Tax Code has become more complicated and convoluted over the past few decades, one fact has remained stable: the person that pays alimony will receive a tax credit while the recipient will have to pay taxes on the alimony. There is an important addendum to this simple rule, however, that you should be aware of. For instance, you cannot be living with your former spouse to obtain the tax credit, even if you are divorced from that person. To learn more divorce, take the time to speak with a family lawyer near you.