When considering spousal support, a client should take into consideration certain tax and other financial impacts that may occur. What are the basic rules that apply to alimony actions and potential awards of alimony in terms of what is included as income and what is deductible? Are the rules that apply in the above situations state or federal rules? Taking your analysis one step further, assume a party to a divorce action is considering filing bankruptcy. How would bankruptcy rules and proceedings affect property division and spousal support in a divorce action?
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