What are the Tax Consequences of Alimony?

VIDEO TRANSCRIPT: I’m Chris Griffith, an attorney mediator with Split Simple, and many times when I work with couples, I let them know that they can elect out of the typical tax treatment of alimony. What does electing out of the “typical tax treatment of alimony” mean?

Typically, alimony is deductible to the person that pays it and taxable to the person who receives it. Couples that are divorced can elect out of this typical tax treatment of alimony so that neither reports the alimony on their tax returns. As long as the two of you agree on this approach, it’s absolutely acceptable by the IRS.

And at Split Simple, we have sophisticated software planning that can help you determine the most advantageous way for you to treat alimony in you case.

Give us a call 720-501-4600 or at splitsimple.com to learn more about how this may apply for you and your divorce. If you have any questions about divorce or the mediation process at Split Simple, don’t hesitate to give us a call for Chicago divorce mediation and uncontested divorce services in Denver. And remember, we have a free initial consultation.