Asked by Samuel Flores on Jun 05, 2024
Verified
Why is it important to distinguish between a property settlement and alimony?
Alimony
A financial support that one spouse is legally obligated to provide to the other during or after a divorce process.
- Distinguish between alimony, child support, and property settlements in tax documentation.
Verified Answer
EH
Ernie HuertaJun 10, 2024
Final Answer :
A property settlement does not result in income or deduction to either spouse.However,in the year received/paid alimony is taxable to the payee spouse and deductible to the payor spouse as a for AGI deduction.
Learning Objectives
- Distinguish between alimony, child support, and property settlements in tax documentation.
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