ABA Family Legal Guide

Family Law

3.4 Separation, Annulment, and Divorce

Separation and Separate Maintenance

Are there any tax advantages to a legal separation?

Yes, potentially. If one spouse is paying support for the other, the payer can deduct that money from his or her income for tax purposes. The payment will then be considered taxable income to the recipient. If the payer is in a higher tax bracket than the recipient, this will reduce the couple's combined tax liability. In any case, it will reduce the payer's taxes and raise the recipient's. To obtain such a deduction, the parties must be legally separated by written agreement or court order. The deduction is not available for those who have an informal separation.