ABA Family Legal Guide

Family Law

3.4 Separation, Annulment, and Divorce

Separation and Separate Maintenance

Why would a spouse who is receiving support agree to this arrangement if it results in more taxes for her or him and a tax advantage to the other spouse?

The tax advantage to the payer may encourage the payment of support in the first place, and it may result in a greater amount of support. Some couples and their lawyers may calculate a tentative amount of support that would be paid without any tax benefit to the payer. Then they calculate the tax benefit of creating a deduction for the payer and income for the recipient. They split the tax savings by increasing the level of support. The increased support usually exceeds the added taxes the recipient will pay, and the payer will have less money out of pocket for the year because of the tax savings.