When the divorce court orders an alimony award, there are records both the supporting and receiving spouse should keep after divorce. Alimony is tax deductible for the paying spouse, and for the receiving spouse, alimony payments are considered taxable income.
As in most other financial aspects of our lives, it's important to keep records of your alimony payments in case of a spousal dispute or challenge from the IRS. If there isn't documentation to prove what was paid and received, the paying spouse may lose the tax deduction or be ordered to pay back support.
The spouse paying alimony should keep a list of each payment, including the date, check number and address where the check was sent. The payor should also keep originals of the checks used to make the payments. It's a good idea to note on the checks the month the support is being paid in case there are legal issues and for personal records.
If the paying spouse makes alimony payments in case, there should be printed receipts for each payment bearing the signature of the receiving spouse.
After filing tax returns with the deducted alimony payments, it's a good idea to keep records of the payments for three years. A local divorce attorney can advise you on how long you should keep these records or if there are other financial documents you should store regarding alimony.
The receiving spouse should also keep records of alimony payment received, including:
Get advice about keeping financial records of alimony payments from a local divorce lawyer. Make sure you financial future is stable and you don't get in trouble with the government by working with a divorce attorney near you on financial issues. Call 877-349-1310 or fill out a divorce case review form to get in touch today.