Almost every divorce case that comes through our office will have spousal support (also called alimony) as a major issue. Whether we represent the party who will pay spousal support or we represent the party who will receive spousal support, one of the first topics we discuss is how the IRS will treat spousal support payments.
The IRS will treat spousal support as “income” to the recipient and a “deduction” for the payor so long as all of the requirements of IRC §71 are met. These requirements are often referred as the “Seven D’s.” Continue reading