The Internal Revenue Code provides that post divorce alimony payments are tax deductible by the paying spouse and taxable to the recipient spouse as "ordinary income." For this reason, it is not uncommon for a negotiated settlement to include the payment of a high amount of spousal support, because such a payment results in tax benefit to the payor. There are some limits to the application, so be sure to check with your tax professional.
For Smart Divorce in Texas
Diane
texasfamilylaw.info
