Record Keeping for Alimony Payers

Legal Adviser April 14, 2015
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divorce papers

divorce papersIn general, spousal support or alimony refers to payments made by one spouse to the other, after divorcing or separating. It isn’t a post-divorce requirement, however, and its determination is solely dependent on the decision of the judge presiding over the case.

Today in Orem, however, judges often tend not to issue alimony orders any longer, but family courts still issue judgments for alimony after long marriages, and wherein one spouse earned much more than the other. Judges also order alimony in divorces, wherein one spouse left the workforce to care for the children or take care of the household.

Keeping Records

Fortunately, alimony is tax deductible for the spouse paying for the alimony. It’s also classified as taxable income for the spouse receiving the alimony payments.

As such, divorce lawyers – Orem or elsewhere – often suggest to clients to keep records of the alimony payments, and each payments acceptance. After all, it often happens that the spouses challenge amounts that have been paid and accepted as alimony, especially after hostile divorces or separations.

If a spouse doesn’t have any documentation that shows how much was paid or accepted, the spouse paying for the alimony may lose the tax deduction for the alimony payment. Said spouse may also end up paying the other any payments that were not documented.

With that said, here is a list of documents you need to keep if you’re the payer of the alimony:

List of Payment Details

The payer should have a list of details when they have made each payment. These details should include the date, check number, address the check was sent to, and copy of the cashed check if the bank supplies it.

Copies of Checks

The payer should have carbon copies of each check they have issued as payment. Fortunately, many banks now allow you to request checkbooks that contain carbon copies of checks.

Receipts of Payments

The payer should have receipts for each payment they have made in cash. They have to make sure, however, that the other person signs each receipt to show that they have received the alimony.

While record keeping is important for every financial responsibility or transaction, it is particular import to alimony matters. Make sure your records are accurate and updated.

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