Spousal support and alimony are both taxable under the IRS code, and maintenance may or may not be taxable. You could be paying for your ex-spouse’s living expenses without realizing that you will be taxed on these funds. For example, if two parties agree that the husband is going to pay the mortgage on his wife’s residence, and they choose not to call that payment alimony, that payment could be recaptured by the IRS because they view it as is an alimony obligation. If your intention is to pay your ex’s bills and not have that be taxable income to the recipient, it needs to be specifically defined in your agreement as a non-taxable obligation.
Abigale M. Stolfe is a partner at Stolfe Zeigler, a boutique family law firm that obtains favorable outcomes for high-net-worth, complex, and litigious cases.