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The U.S. Tax Court has recently governed that alimony payments made verbally, and not in writing, are not deductible.

This ruling came up because of a case regarding a separated man and wife.  In this specific case, the man and wife, prior to divorcing, made an oral or verbal agreement that stated the man would provide monetary support to her and their shared child.   Importantly, the former husband and wife did not state whether this would be spousal support or child support, and they did not differentiate between the two.  It was stated that they had an agreement between them about what this “support” was — and nothing was officiated in writing until the final divorce proceeding.

Later, when the man married another woman, they had help filing out their tax returns, stating that they declared a deduction of $19,200 under a section pertaining to alimony.  However, they were only allowed to claim $1,400.  When this was taken to the Tax Court, and the specifics of the case were heard, the Tax Court did not rule on their side because they stated that alimony payments can only be deducted when there is evidence in writing related to the dissolution.

Farbod Majd Esq.
Divorce Attorney w/ offices in Beverly Hills/Los Angeles
Services in English, Turkish, and Farsi/Persian (Iranian/American Lawyer)

8383 Wilshire Blvd Suite 646, Beverly Hills, CA 90211

310.956.4600 | Fax: 310.878.8989 | Fmajd@FmajdLaw.com

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