The end of a marriage can be an emotional but crucial time for spouses, particularly those in Georgia County, Georgia, to make decisions that may either make or break their financial security after the divorce. Those decisions may involve a good divorce settlement with spousal support.
In Georgia, spousal support permits one spouse to receive a monetary award or financial support from the other spouse. The duration of alimony may be either permanent or temporary, depending upon the circumstances of the case. An alimony payer might treat spousal support as another monthly expense that only benefits the former spouse. However, alimony payers should take note that alimony payments may be treated as a tax deduction if they meet certain legal stipulations.
For alimony to be deductible, payers must first meet seven legal requirements. Some of these are -- alimony payment must be ordered by a written divorce or separation agreement and made on behalf of the former spouse. The payment should be in cash and cannot be deemed as child support. In the couple is divorced or legally separated, they cannot live under the same roof or file a joint tax form. If alimony payments meet all the requirements, they are considered deductible alimony.
Spouses often overlook the potential effect of tax burden in the event of divorce. Failing to take this matter into account will result in large tax bills causing financial stress in the future.
Alimony may help low-wage earner spouses equalize an unfair economic effect of divorce while deductible alimony provides tax relief for alimony payers. It may be advisable for Georgia spouses to seek legal help when dealing with divorce-related tax matters.