Updated March 1, 2018
Alimony, also called spousal support, means a payment by one spouse to another following a divorce. Courts don't always grant alimony, and the trend is away from alimony orders, but where the marriage was long and one spouse earns a lot more than another, or one spouse left the workforce in order to raise children or manage the household, alimony is fairly common. (For basic information about alimony, read Nolo's article Alimony: What You Need to Know Before Divorce.)For now, alimony is tax-deductible for the person paying, and constitutes taxable income for the person receiving it, so it's important to keep adequate records if you are paying or receiving alimony. Note that this will change due to the 2017 Republican Tax Bill. Beginning January 1, 2019, individual paying alimony will no longer be able to deduct their payments for tax purposes, and support spouses won't have to include alimony in their gross income.
Until 2019, this point cannot be over-emphasized. Frequently after a divorce, the spouses dispute, or the IRS challenges, the amounts that were actually paid or received. Without adequate documentation, the payer may lose the alimony tax deduction or be ordered to pay back support if the other spouse makes a claim in court.
Here are the records each party to the divorce should keep:
The person paying alimony should keep:
Be sure to keep these records for at least three years from the date you file the tax return deducting the payments. Some lawyers and tax advisers say you should never throw away records like these.
The spouse receiving support should make a list that shows each payment received. Include the following information:
To learn about other issues arising with alimony, get Nolo's Essential Guide to Divorce, by Emily Doskow (Nolo).