Yes, spousal maintenance is tax deductible for the spouse making the payments, and counts as taxable income for the recipient spouse in Brooklyn.
Only the spousal maintenance payments themselves are tax deductible.
Property distribution is not, so if you agree to pay spousal maintenance, the IRS will review your filings closely for several years to ensure that you’re reporting the payments properly and not hiding other costs of your divorce in them.
When you’re negotiating a settlement in a divorce in Brooklyn, you have to consider the tax implications, which may benefit (or hurt) you for years down the road.
The attorneys at Zelenitz, Shapiro & D’Agostino can help you find the best balance in your divorce settlement and get the most favorable tax situation with your spousal maintenance payments.
Call us today at 718-725-9601 to speak to an experienced Brooklyn divorce lawyer for free.