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Divorce, Alimony and the Mortgage Interest Deduction

I can tell you from nearly 30 years of being a divorce attorney that guys tend to not like paying alimony. It's the word--alimony.
 
When I meet with a new client at SIEGELLAW, I first provide the client with a great education, so that we can generate great options. That is where having a financial mind comes in handy!
 
I tend to advise financially superior clients to agree to pay both alimony (as long as it has a clear ending period), as well as the mortgage on the marital home, so that the client obtains deductions for both. 
 
This method provides the paying spouse with a super deduction: both alimony and the mortgage interest deduction!
 
Now, I need to put up a huge caution flag, if you do not use a CPA, trusted mortgage refinance individual, also known as a Certified Divorce Lending Professional, or someone similar. Sometimes, the mortgage payment can end up becoming alimony, if you are paying the mortgage but do not own the house. 
 
What I am saying is that it is incredibly important to surround yourself with a highly experienced divorce attorney, as well as an equally able team of appropriate financial professionals, to ensure you get no surprises.
 
Imagine a mom with 3 kids living in the house, and dad is paying alimony, child support and the mortgage. Suppose that as a result of the title to the house, the IRS deems the mortgage dad is paying as alimony to wife, and therefore, she has to pay taxes on it! All because the planning was not done properly with the right people.
 
Your divorce team begins with your highly experienced divorce attorney at SIEGELLAW, but it does not end there.
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