If you are recently divorced, you may still be getting used to the changes in your life. No matter how positively or negatively a marriage ends, it can still take time to become accustomed to being apart from your spouse. On top of that, you may have moved into a new home and you may be adapting to a new child custody arrangement. Furthermore, as many divorced people in Michigan already know, you may have to make alimony payments to your ex.
The amount you are required to pay can depend on several factors. You will also need to figure out whether you will pay monthly or as a lump sum. Whatever the case, it is important to remember that these payments can be deductible. This is because the tax on the money will be paid by the recipient. As such, if you are on the receiving end of alimony payments, it is vital to remember to declare them when you do your federal taxes.
As this article on alimony explains, there are a few conditions surrounding whether the payments are deductible. For example, you cannot be sharing a house with your former spouse when the payment is made. Furthermore, you must not be filing joint tax returns or making the payments in cash.
There are other factors to be aware of when figuring out your rights with regard to alimony, but do not feel overwhelmed. An attorney should be able to advise you about your options and assist you in ensuring that you are able to make the most out of your situation.