Stay Organized when Spousal Support Is Awarded
Alimony, or spousal support, is not guaranteed in every divorce. When it is awarded, there are a bevy of factors that are considered by a judge. The length of the marriage, the health of the spouses, the financial situations of the spouses, the earning potential of the spouses — the list goes on and on. If it is awarded, spousal support instantly becomes one of the most important parts of a post-divorce arrangement. And this isn’t just because of the money involved.
The former spouses involved in a spousal support arrangement should keep track of the payments, whether they are paying or receiving the money. One of the key reasons for this is the tax implications of spousal support. The paying spouse can deduct the payments from their taxes, while the receiving spouse must include it as part of their taxable income.
This means that recordkeeping becomes an important responsibility after alimony is awarded. Both spouses should keep meticulous notes on a wide array of information included in their payments, such as:
The date of the payment
The amount paid
The address it was sent from and received at
The bank used for the transaction (if a check was used)
If cash was used, create a handmade receipt signed by both parties
Account number used for the transaction
Any copy of a check that was used
This information will come in handy if a lawsuit or disagreement comes up down the line.
Source: FindLaw, “Alimony Guidelines: What Records to Keep Regarding Your Alimony,” Accessed June 16, 2017