Alimony is not deductible if paid and received by divorced parties living in the same home after the one-month grace period.

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According to IRS rules, alimony is only deductible if paid to a former spouse who is not a member of the same household. So if divorcing spouses continue to live together, any payments made won't be tax deductible for the payer and won't be counted as taxable income for the recipient. There is a one-month grace period, though, in which payments can still be considered alimony if the spouses are living separately and planning to divorce.

Alimony Is Not Deductible If Paid and Received by Divorced