Spousal support, also known as maintenance, is court-ordered payments one spouse pays to the other spouse after a divorce.

The 750 Illinois Compiled Statute 5/504, titled ‘maintenance’ states that  “the court may grant a maintenance award for either spouse in amounts and for periods of time as the court deems just, without regard to marital misconduct, and the maintenance may be paid from the income or property of the other spouse.”

Ordered Maintenance

Sweeping tax reform legislation was passed by the United States Congress in December 2017, with the Tax Cuts and Jobs Act representing the largest change to the federal tax code in the past three decades. The changes implemented in this bill will have an impact on people across the country in a wide variety of ways, and both individuals and organizations are still working to determine how they will be affected. One area of this bill that divorcing spouses should be aware of is a major change to how spousal support (alimony) will be taxed.

Taxes on Spousal Maintenance

When spouses divorce, one spouse may be required to pay maintenance to the other spouse, allowing them to maintain a lifestyle similar to what they enjoyed when they were married. This is usually the case when one spouse earns a higher income or when a spouse has chosen to devote their time and energy to the family rather than to further their career. Prior to the tax reform bill, the spouse paying maintenance would deduct the amount of these payments from their taxable income, and the spouse receiving maintenance would pay taxes on these payments.