As far as taxes concerning a divorce in the state of Iowa, there are certain things that should be clarified, especially about tax planning and spousal support. Federal taxes are to be paid on spousal support the same year the spousal support is received. If the above mentioned taxes are not withheld, one could be asked to pay these taxes when filing quarterly returns.
If there’s a divorce agreement, the spousal support could be deductible if a certain number of requirements are met. Any payments that are not made because they are required by an agreement or by a decree are not deductible as spousal support.
Before agreeing to a settlement in the marital separation agreement, it is advisable to consult a tax expert.