Generally, if all the IRS requirements are met, alimony will be deductible to the spouse paying it and taxable income of the spouse receiving it. There are detailed rules regarding the acceleration and/or reduction of alimony payments during the first three years of the settlement, which can cause a “recapture” of these payments. There are also rules that may cause alimony payments to be treated as child support if they relate to a “Contingency.”