What records you should keep when you pay or receive alimony payments.

Alimony, also called spousal support, means a payment by one spouse to another following a divorce. Courts don't always grant alimony, and the trend is away from alimony orders. But where the marriage was long and one spouse earns a lot more than another, or one spouse left the workforce in order to raise children or manage the household, alimony is fairly common.

Alimony is tax-deductible for the person paying, and constitutes taxable income for the person receiving it. So it's important to keep adequate records if you are paying or receiving alimony. This point cannot be over-emphasized. Frequently after a divorce, the spouses dispute, or the IRS challenges, the amounts that were actually paid or received. Without adequate documentation, the payer may lose the alimony tax deduction or be ordered to pay back support if the other spouse makes a claim in court.

Be sure to keep these records for at least three years from the date you file the tax return deducting the payments. Some lawyers and tax advisers say you should never throw away records like these.