Savannah GA Divorce Tax Consequences

Savannah GA Divorce Tax Consequences

Savannah GA alimony payments may be structured in a variety of ways

When a court in Savannah GA decides that one spouse owes the other alimony payments, it has a number of different ways they may choose to structure those payments. First, a decision has to be made as to whether the payments shoul be made in a single lump sum, or by periodic payments spread over a period of time. Second, when the court decides that payments must be made periodically, they must then determine the period of time the alimony payments have to be made.

Divorce has tax implications. If you get spousal support, you have to report it as taxable income. If you are providing spousal support, you can deduct it.

If you are granted spousal support, you need to plan for the potential tax consequences of the income. Unlike an employer, your former spouse will not hold back any taxes from your support payment. You have to deduct spousal support payments on your income tax return, but not child support or property distributions. You can, also, make spousal support payments nontaxable and nondeductible as long as it goes both ways and both spouses agree by stating as much in your marital settlement agreement. You should consider doing this if the spouse receiving support is in a higher tax bracket than the paying spouse or if the giving spouse doesn’t need the tax deduction and the receiving spouse doesn’t want to report the income.

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Savannah GA Divorce Lawyer
GA Uncontested Divorce – Georgia Contested Divorce -

We specialize in: Georgia Separation Agreements – Spousal Support – Property Division – Alimony – Military Divorce – Contempt Actions in Divorce Cases, Uncontested Divorce, Savannah Georgia Noncontested divorce – Child Custody Attorney / Custody modification – Child Support Modification – Child Visitation

Savannah GA, Richmond Hill, GA, Fort Stewart, Hinesville, Georgia Family Law Lawyer