Spousal support, alimony pendente lite (support during the pendency of the divorce) and alimony payments are treated as taxable income to the payee and deductible to the payor for tax purposes. However, child support payments are neither taxable income to the payee, nor tax deductible to the payor. Court orders that include spousal support or alimony, and child support, are treated as taxable income to the payee and tax deductible to the payor, if such orders are categorized as unallocated. When the order specifically allocates a particular amount as spousal support or alimony, and specifically allocates a particular amount as child support, only the amount allocated as spousal support or alimony is considered taxable income for the payee and tax deductible to the payee.
The court may award alimony only where it finds such is necessary. This is a complicated determination that is dependent on 17 factors specifically set forth in the Pennsylvania Divorce Code. Modification of an award of alimony is possible under certain circumstances, most notably in the case of remarriage or loss of job. Exploring the many factors related to alimony is a complex task that requires the expertise of our firm, a firm that focuses on divorce and does not treat it as a “side line.”
There are many complex tax implications in the divorce setting. If you anticipate a divorce, contact the experienced attorneys at Wilder Mahood McKinley & Oglesby to discuss the best approach to your individual financial situation.
If you are divorcing and have concerns about alimony, the law firm of Wilder Mahood McKinley & Oglesby can provide the guidance and representation you need. Contact our seasoned lawyers online or call our office in Pittsburgh, Pennsylvania, at 412-261-4040.
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