[judimlee]

Are divorce settlements taxable.
Are they the same as reg tax the IRS get from you each year.
Does the Gov, get 40 precent of your settlement? How does this work

[tickle]

This is from About.Com:divorce support:

Income taxes and your divorce settlement:

Primarily, alimony payments and filing status are affected by your divorce settlement. Alimony received is taxable as ordinary income, so a $60,000 payment received is actually worth $42,000 after taxes when taking into consideration a 30% marginal state and federal tax bracket.

On the flip side, the payer of alimony receives a tax deduction. So the same $60,000 payment actually costs the taxpayer $42,000 assuming they are in the same tax bracket.

Filing status is an important decision, you will make after divorce. If you were still married on 12/31 of the tax year, you have the option of filing a joint return with your ex spouse. If you can do this without conflict, you should consider this option because it can save considerable taxes for both spouses.
If you were divorced after 12/31 and you qualify, filing as head of household versus single can also save tax dollars. You best course of action is to consult a tax professional, before, during and after the divorce process.