Though it is not as common as it once was, many people in Utah pay spousal support to their former spouse after divorcing. The reasons for doing so are typically because one spouse made a significantly higher income than the other or because one spouse did not work in order to care for children or maintain a home. Documentation that makes a record of alimony can be important both for the recipient and the payer, should a conflict ever arise.
Because alimony is tax-deductible for those who pay it, and taxable income for the person who receives it, it is very important that accurate records of payments are maintained by both ex-spouses. If an ex-spouse stops paying alimony — or an ex-spouse claims that he or she is no longer receiving payments — proper documentation can help a person prove his or her point. If these records do not exist, or aren’t specific enough, it can be detrimental to both spouses.
For both the payer and recipient, records should be kept for a minimum of three years from the date one files his or her income taxes where the alimony is reported, though it might be a good idea to keep the records indefinitely. Payers should have a list that shows the payment amount, date and check number, as well as carbon copies of each check and receipts for cash payments signed by the recipient. Those who are receiving the alimony will want to keep a list as well, detailing the payment date, amount, check number and bank information. They should also keep copies of the checks and copies of receipts for cash payments.
Alimony can be a significant facet of a Utah divorce. The specific circumstances of a couple will dictate whether a court makes it part of a settlement. If it is, accurate records can help every party involved if anything happens within the agreement.