Divorce changes more than your relationship. It changes your finances, too. For many Colorado Springs families, spousal support becomes one of the most important issues to understand during and after legal separation.
According to the Colorado Department of Public Health and Environment, Colorado’s divorce rate is 2.79 per 1,000 residents. That means thousands of couples each year are dealing with the financial side of spousal maintenance, including how it affects their taxes.
A major federal tax change in 2019 reshaped how spousal support works. Before 2019, the spouse paying support could deduct those separate maintenance payments on their federal return, and the receiving spouse had to report the money as taxable income. For any divorce finalized on or after January 1, 2019, that system changed. When one pays spousal support, it’s no longer deductible for the payer, and it is no longer taxable for the recipient.
This shift affects how modern families plan, budget, and negotiate support. Here, we break down what these rules mean for people throughout Colorado Springs and El Paso County. You’ll learn:
- What spousal maintenance means under Colorado law
- How federal tax rules changed after 2018
- When older divorce decrees follow different tax rules
- How Colorado state taxes treat and determine spousal support
- Key issues for military families and domestic violence survivors
- When to contact a spousal support lawyer in Colorado for guidance
What Is Spousal Support in Colorado
Spousal support, also called spousal maintenance, is money that one former spouse pays to the other during or after a divorce or separation. Colorado courts award maintenance to help both parties meet their basic financial needs when the separation creates a significant imbalance in income or earning ability.
Spousal support is different from child support. Child support is based on strict guidelines and is designed to meet the needs of minor children. It is the child’s right to support.
Spousal maintenance is more flexible. Courts look at the financial resources of each spouse, the standard of living during the marriage, and the length of the marriage, and several other factors when deciding whether support is appropriate.
Types of Spousal Maintenance
Colorado recognizes two main types of financial support or maintenance. Temporary maintenance may be awarded while the divorce case is pending. This type of support helps stabilize both spouses until the final order is entered.
Permanent maintenance applies after the divorce is finalized. It can last for a set number of years or, in rare cases, continue for an indefinite period. The type and length of maintenance usually depend on marriage length, the difference in incomes, and each person’s ability to earn.
For example, a longer marriage where one spouse paused their career to manage the home may lead the court to award longer support or alimony payments.
Duration and Modification
Colorado follows advisory guidelines for maintenance based on the length of the marriage. Shorter marriages often result in shorter support periods, and longer marriages often result in longer terms.
Maintenance can also be modified or terminated if circumstances change. Common reasons for modification include job loss, a significant increase in income, or remarriage.
Role of Spousal Support Attorneys
A spousal support lawyer in Colorado helps clients understand how these rules apply to their situation. The right attorney evaluates income, earning potential, and future needs before presenting a clear request to the court.
This is especially important for military families, survivors of domestic violence, and people with complex assets or unique financial arrangements.
Federal Tax Law on Spousal Maintenance
Federal tax treatment of spousal support changed significantly in recent years. If you are preparing for a divorce process or thinking about modifying an older order, it is important to understand which set of rules applies to your case.
Changes from the Tax Cuts and Jobs Act
Before 2019, the spouse paying maintenance could deduct those payments on their federal income tax return. The recipient spouse had to report the spousal support payments as taxable income.
This system often created tax benefits for the paying spouse and provided more flexibility during negotiations.
The Tax Cuts and Jobs Act changed these rules for all divorce and separation agreements finalized on or after January 1, 2019. Under the current law:
- Spousal support is not tax deductible for the payer
- Spousal support is not taxable income for the recipient
This structure treats spousal support more like child support for federal tax purposes.
Pre-2019 and Post-2019 Decrees
The date of your decree matters. If your divorce was finalized on or before December 31, 2018, and the support order has not been modified, the old rules still apply. You may still deduct payments or report them as taxable income depending on your role.
If your divorce was finalized after that date, the new rules apply automatically. Any modification made after January 1, 2019, can also fall under the new law if the updated agreement specifically references the Tax Cuts and Jobs Act.
IRS Guidance on Reporting
For post-2018 decrees, the IRS does not require either spouse to report spousal support paid or received on their federal return. This simplifies tax filing but removes the deduction that once helped paying spouses reduce their overall tax burden.
Keeping copies of your decree, payment records, and any modification documents can help avoid confusion during tax season or if questions arise later.
Colorado State Tax and Spousal Support
Colorado state tax rules follow the same approach as federal law for most spousal support orders.
This makes reporting simpler for many families in Colorado Springs, although it also means there are no state-level tax advantages tied to spousal maintenance.
Tax Treatment for Colorado Residents
If your divorce was finalized on or after January 1, 2019, spousal support is not deductible for the paying spouse on Colorado state income taxes. The receiving spouse does not report spousal support as income on their Colorado return.
Older decrees that still fall under the pre-2019 federal rules may carry over the old tax treatment. This is uncommon as time passes, but it can apply to divorces that have not been modified since 2018.
Impact on State Tax Returns
The Colorado Department of Revenue generally follows IRS guidance for how to treat alimony and spousal maintenance.
Most taxpayers do not need to enter any specific spousal support figures when completing their Colorado Individual Income Tax Return, also known as Form 104.
Even with simplified rules, it is helpful to keep a copy of your decree and payment history in case the state requests verification or clarification.
Differences From Federal Tax Law
Colorado has aligned its rules with federal law, so there are no major differences for most families.
However, people with income from multiple states, service members stationed outside Colorado, and individuals who split time between states may need to check how other jurisdictions tax spousal support.
A tax professional who understands multistate or military issues can help uncover any conflicts that might affect your filings.
Special Issues for Military Families
Colorado Springs is home to a large military community, including service members stationed at Fort Carson, Peterson Space Force Base, Schriever Space Force Base, and the Air Force Academy.
Military divorces often involve unique financial and jurisdictional challenges, which can affect both the calculation and the tax treatment of spousal support.
Spousal Support and Military Divorce
Military divorces follow the same federal and state tax rules as civilian cases. However, the financial picture is often more complex after two people are legally separated.
Some military allowances are not considered income when calculating spousal maintenance. Others are fully counted. Correct classification can influence the amount of support awarded and how both spouses prepare for tax season.
A spousal support lawyer who understands military pay structures can help identify what counts as income and how your specific situation should be handled during negotiations.
Out-of-State and International Considerations
Service members and military families often face moves across state lines or overseas. If either spouse lives outside Colorado, the tax treatment of spousal support may vary based on local laws.
Some states tax income differently, which can affect the receiving spouse. International assignments can add another layer of complexity.
Legal advice is especially important when a family’s residence, income sources, or tax obligations are spread across different states or countries.
Military Pay and Spousal Maintenance
Military pay can include housing allowances, hazardous duty pay, separation pay, and other forms of compensation.
Some of these amounts are counted as income for spousal support. Others are excluded. Correctly categorizing military pay reduces the risk of incorrect calculations and avoids problems with DFAS or the IRS.
Keeping clear records of pay changes, deployments, and allowances can also help both parties maintain accurate support expectations over time.
Domestic Violence and Spousal Support Tax
For survivors of domestic violence, spousal support can play a critical role in rebuilding financial stability. The tax rules that apply to these payments may create additional questions about privacy, safety, and long-term planning.
Confidentiality and Tax Filings
Protecting personal information is often a priority for survivors. Filing tax returns separately may help keep a current address, income details, or other sensitive information private.
Colorado’s Address Confidentiality Program offers an added layer of protection by keeping residential addresses out of public records and providing a legal substitute address for survivors who qualify.
For anyone receiving spousal support under a post-2018 decree, the payments do not need to be reported as taxable income. This helps avoid sharing unnecessary financial details and reduces exposure during tax season.
Financial Planning for Survivors
Spousal support often forms part of a survivor’s long-term financial recovery. Since support payments from post-2018 divorces do not count as taxable income, survivors may qualify for certain tax credits based on their own earnings.
Planning ahead with help from a knowledgeable attorney or financial advisor can lead to more stable budgeting and greater financial independence.
Support and Resources Available Through Attorneys
Spousal support family law attorneys do more than handle court filings. They often connect survivors to community resources, including counseling services, benefits programs, and financial assistance.
Having a legal advocate who understands the complexities of domestic violence can help survivors make informed decisions about support, taxes, and long-term security.
Protect Your Financial Future With the Right Support
Spousal support affects more than monthly budgets. It shapes long-term financial stability, influences future tax filings, and impacts how both former spouses plan for the next stage of their lives.
When the rules feel complicated or the stakes feel high, having a knowledgeable advocate becomes just as important as understanding the law itself.
At Rocky Mountain Legal Group, we’ve guided Colorado Springs families through these decisions for more than 30 years. Our team helps clients interpret support orders, understand how federal and state tax rules apply, and make informed choices about modifications or enforcement.
If you want clarity about your spousal support obligations or rights, professional guidance can make the path forward much more manageable. Contact Rocky Mountain Legal Group today to schedule a consultation and get the support you need for the next chapter. Reach out today!