Parents are encouraged to come to an agreement that is fair, equitable and ensures that children have financial security. That process can happen while temporary orders are in place and become part of the marital settlement agreement (MSA).
In many cases, it’s a retirement account. California is a community-property state: meaning that in a divorce, assets are divided in half—including IRAs, SEP IRAs, Roth IRAs, 401(k) 403 plans, Keoghs and other pension plans.
When a spouse receives alimony, it is either a temporary measure that allows a spouse to continue the standard of living to which they are accustomed while the divorce is pending, or it is permanent, whether by court decree or through a negotiated settlement.
Alimony, also known as spousal support or maintenance, is intended to allow a spouse who earned lower or no wages during the marriage to continue the standard of living they had during the marital years.
If your divorce was finalized before the end of 2018, the IRS rules for deductions include, among other things, that the alimony must be paid in cash or by check, that the payment is not for child support and that you and your spouse are not filing taxes jointly.