When there are viable claims for both alimony and child support, often the Court will award “undifferentiated family support”, which is a combined number that will encompass both types of awards. This can be an opportunity to get a tax benefit normally associated with alimony but not available for child support, but one should be very cautious.
In drafting a provision for family support, the attorney should be very careful with the language. The component in family support awards that can be attributable to child support is typically excluded from tax calculations. So the drafted provision, if it to be used to obtain a tax benefit, should neither indicate the amount attributable to child support, nor make the amount calculable based upon a reduction being tied to a child-related event, such as the attaining of majority age for on or each child.
The IRS realizes that some component of family support is attributable to child support, but when the amount is incapable of calculation, then the IRS will ordinarily not look to void the tax break. An exception exists when certain contingencies are met, such as the calculability of the child support component from extrapolation of reductions related to the child.
Case law surrounding this issue is unclear, so one should take caution. When dealing with tax issues, it is best to avoid putting yourself in a compromising position, and you should discuss your case with a competent professional.