Spousal Support

Separation and divorce can be a complex situation, with equally complex tax rules and implications.

When it comes to support payments, although (in general) you aren’t taxed on child support payments, spousal support is treated differently.

Spousal support is usually taxable AND deductible as it is treated as income. So, the recipient must report support payments as taxable income, and the support payer can claim the payments as a deduction.

Ensuring you consult with a knowledgeable accountant is crucial to avoid any surprises when it comes to tax time.