Before I give you an answer I want to make sure you understand that the following information is intended as a basic guide, a simple overview, on taxes for spousal maintenance in Australia. If you are divorcing you should absolutely speak to a lawyer and a tax professional for advice specific to you and your spouse.
In general, spousal maintenance payments will not be taxed. This means that when you receive money from your former spouse as spousal maintenance you should not be taxed on this ‘income’. One of the only exceptions to this rule is when the payer (your former spouse) is found to be paying you in order to avoid taxes on his or her income. This is strictly prohibited.
Also, there are no tax deductions on the money given as spousal maintenance; any money given to the former spouse is not eligible for a tax deduction.
Divorce Can Be Healing
Nothing about a divorce is ‘fun’. But believe it or not, a divorce doesn’t have to be difficult. During a collaborative divorce the couple is able—with the help and support of a variety of professionals, from mental health to tax specialists—to come out the other end of the divorce confident in any financial settlement and/or division of assets. More often than not, the couple even gets along better than they have in years.
To learn more about the collaborative divorce process and how it can help save you both time and money read our article, ‘3 Reasons Collaborative Divorce Could Work for People With Lots of Money.’