On spousal support and the tax implications of it

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There are so many factors that can be involved in any given divorce. There's child custody and child support; there's alimony and property division; there are prenuptial agreements and family businesses. Depending on the case, certain elements will be prevalent. Others will not. We say all of this in the context of spousal support, which can be very helpful for people who are trying to res-establish themselves after a divorce.

But spousal support isn't guaranteed. And even when it is involved, there are a number of things that both the paying spouse and receiving spouse need to understand about spousal support.

First, there are tremendous tax implications for you if you are involved with spousal support. The paying spouse can deduct his or her payments from his or her taxable income, while the receiving spouse must include his or her spousal support payments as part of his or her taxable income.

Also, both people should keep extensive records of the payments they either send or receive. Without any recordkeeping, you could be lacking in evidence and data should legal action be taken by either you or your former spouse. You should note when payments are made; how much they are made for; which bank is being drawn from; what account is being used for the payment; what the check number is; and where the check was mailed to.

If the paying spouse uses cash, then make sure the two of you create your own receipt, and sign that receipt.

Source: FindLaw, "Alimony Guidelines: What Records to Keep Regarding Your Alimony," Accessed Oct. 3, 2016

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