If a same-sex married couple obtains a divorce and a California Family Law court awards spousal support (alimony), what is the tax treatment of these payments?
If the payment satisfies the requirements under tax law for alimony, it would be deducted by the payor and included by the payee. However, federal treatment of these payments is uncertain. If a same-sex married couple obtains a divorce and a California Family Law court orders a division of mutually acquired property (acquired with separate and/or community funds), what are the tax considerations for a gift, sale, part gift, or part sale? Could anything qualify for IRC Section 1041 or R&TC Section 18031 treatment? Under California tax law, it would be considered a property transfer by a married individual. Federal treatment of these transactions is uncertain.
Related Questions
- If a court orders termination of a registered domestic partnership and a California Family Law Court awards spousal support (alimony), what is the tax treatment of these payments?
- If a same-sex married couple obtains a divorce and a California Family Law court awards spousal support (alimony), what is the tax treatment of these payments?
- How long does a couple have to be separated before filing for divorce in California?
