If you are filing for divorce in Nassau County and there is a possibility
that the family law judge handling your case may award alimony, otherwise
known as spousal support or "maintenance" in New York, it will be necessary for you to understand the role
that alimony plays with regards to taxes.
Whether you are the paying spouse or the receiving spouse, special tax
rules will apply.
Alimony or maintenance is money that a spouse pays to their former spouse
in a separation or divorce. However, maintenance does not include any
voluntary payments; for example, cash payments made directly to the former
spouse that weren't made as a part of the legal separation or divorce.
In order for a payment to qualify as maintenance, it must meet certain
criteria. According to the Internal Revenue Service (IRS), maintenance
does not include:
- Use of the paying spouse's property,
- A noncash property settlement, or
- Payments that are used to maintain the payer's property.
What Can Be Maintenance
The following types of payments
can be considered alimony in a divorce:
- Payments that are made to a third party on behalf of a spouse.
- Payments made to cover the cost of life insurance premiums.
- Payments made for a home owned by both parties.
- Mortgage payments on a jointly-owned home.
- Real estate taxes and insurance on a home owned as tenants in common.
- Certain other payments made to a third party.
While the above payments can be considered maintenance, they must be a
part of the legal separation or divorce instrument to be enforceable.
If you are considering one of the above methods of paying alimony, you
should discuss these possibilities with a qualified Nassau County divorce lawyer.
Take note of these considerations about maintenance: (1) payments made
to a spouse while you are both members of the same household are
not alimony if you are legally separated or divorced, (2) child support is
not alimony, (3) alimony is tax deductible for the payer, and (4) the recipient
must report the alimony as income.
Have further questions about alimony in New York? Contact Jason M. Barbara
& Associates, P.C.to schedule a free consultation with a Nassau County