Effect of 2017 GOP Tax Reform on Maintenance in Illinois

Maintenance/Alimony (hereinafter referred to as “maintenance”) is “…a payment to or for a spouse or former spouse made under a divorce or separation instrument.”1 The IRS has specific requirements for payments to a spouse to be considered maintenance.

The payments must be:

1. Paid as cash or cash equivalents;

2. Made pursuant to a qualified instrument (usually a divorce decree or separation agreement);

3. Is not designated by the instrument as “not maintenance”;

4. The parties must reside in separate households when payment is made;

5. The payor is not liable to make any payment after death of payee spouse;

6. The parties must file separate income tax returns; and 7. The payment is not treated as child support.  Read complete article

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