Posted by: Gary M. Sigman, CPA, MTax, PFS, AEP®
Alimony payments are tax-deductible only if they meet certain requirements.
When negotiating a divorce settlement, it is important to have your divorce decree or separation agreement reviewed for tax purposes before it becomes effective, to make sure these requirements are met. Even if the decree or agreement specifies that the payments are alimony they won't be treated as alimony for tax purposes unless these requirements are satisfied.
Your tax advisor should be consulted before signing the legal instrument.
If you have questions on this, or any other tax or business related issue, please contact the experts at Zinner & Co.