Statistics show that more than 50 percent of marriages in the United States end in divorce.The process of a divorce can create tremendous animosity between the parties, and this can lead to difficult financial issues for those affected by the split. There are many complex federal tax issues that need to be planned for, or they will create tremendous pitfalls. The Internal Revenue Code also contains several provisions that provide specific guidance for divorce-related transactions.
Perhaps the most widely known financial aspects of a divorce are alimony and spousal support. Under IRC §71, alimony is deductible by the payor and is included as income by the payor's former spouse. There are, however, several requirements that must be met for alimony to be deductible.
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