Going through a divorce, child custody proceeding, or both can be one of the most stressful and emotional events in an individual’s lifetime. Although the parties’ finances are addressed, the parties often fail to realize the different tax effects that a family law case creates. With tax season upon us, it is critical that you consider or reevaluate the various taxes and deductions available.

Under Internal Revenue Code Section 71, California payments for spousal support or alimony are tax deductible to the party paying the support, and the payments are taxable to the party receiving the support. However, in order to claim spousal support or alimony as a deduction on your income taxes, a number of requirements must be met.

For example, it is required that the payments be received under a divorce or separation instrument, including a judgment, written separation agreement, or order requiring support payments (such as a temporary order). Even upon a final judgment, a deduction for the spousal support or alimony payments will not be allowed if the parties are still living in the same home. Finally, the payments cannot be “child support,” which is generally non-deductible to the party making payments.

A family law matter can be very emotional, and adding tax implications further complicates matters. Let an experienced Riverside County family law attorney review your case and reassure you that you are receiving the best tax benefits available to you. The law firm of Wallin and Klarich is prepared to answer your family law questions and is immediately available to assist you with your case. Contact us today at 888-749-7428 for additional information. We will be there when you call.