Flexibility of Alimony

Alimony or spousal support is a flexible financial tool for divorcing couples because it offers tax advantages that can help put more cash in the pockets of both spouses.

Alimony is designed to provide the lower-income spouse with money for living expenses over and above the money provided by child support. Alimony is different from child support. Where child support is a simple mathematical calculation using guidelines published by the jurisdiction, alimony is very much at the discretion of the judge.

A judge considers many factors when deciding whether or not to grant alimony. These differ from jurisdiction to jurisdiction of course, but they usually involve the parties' relative ability to earn money, both now and in the future; their respective age and health; the length of the marriage; the kind of property involved, and the conduct of the parties. In general, about the only time a judge will award alimony in most states is where one spouse has been economically dependent on the other spouse for most of a lengthy marriage.

Alimony gets treated differently from child support for tax purposes. Alimony is tax deductible to the person who pays it, and included in the taxable income of the person who receives it. Child support, by contrast, is not taxable to the person who receives it and not tax deductible to the person who pays it.

When one spouse has a significantly higher income than the other, there may be some tax advantages to using alimony, even if a judge wouldn't ordinarily award it. For example, Rufus and Rhonda realize early in their negotiations that alimony might make sense for them. Rufus's income of $175,000 made every deduction precious to him, and on her $23,000 schoolteacher's salary, Rhonda had a substantially lower tax rate. If Rufus could claim the support he paid as alimony, he could afford to pay Rhonda more than enough to compensate her for the extra tax she would have to pay, and still come out ahead.



Suggested Reading
The Spousal Support Handbook The Spousal Support Handbook
Spousal support is one of many issues that is often difficult for spouses to agree upon. Before negotiating and even signing an agreement regarding spousal support it is very important that you understand your rights and the repercussions of any actions taken.

Download Now


Recent Related Blog Posts
    All Spousal Support Blog Posts

Related Article Archives
Spousal Support
Tax Aspects
    All Article Archives

Related Categories
Bankruptcy & Divorce
Divorce Financial Planning
Divorce Laws
Insurance & Divorce
Women's & Mother's Rights
    All Categories
Related Forums
Bankruptcy
Financial Aspects
Men's Rights
Spousal Support
Tax Aspects
Women's Rights
    All Forums

Resources & Tools

Bookstore Promotion Discount

Start Your Divorce Online Start Your Divorce
Several Options to Get Started Today.
Divorce Tools Online Divorce Tools
Keeping it Simple to Get the Job Done.
Divorce Downloads Download Center
Instantly Download Books, Guides & Forms.
Divorce and Custody Books Discount Books
Over 100 of the Best Divorce & Custody Books.
Negotiate Online Negotiate Online
Settle your Divorce and Save.
Custody and Support Tracking Custody Scheduling
Make Sure You Document Everything.
   
DURATION -- Alimony is often considered "rehabilitative," that is, ordered as long as necessary for the recipient to receive training and become self-supporting. If the divorce decree does not specify a termination date, the payments continue until the court orders otherwise. Most awards end if the recipient remarries.
Start Divorce

Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Enter Your Zip Code:

 

Featured Book The Spousal Support Handbook

The Spousal Support Handbook

The Spousal Support Handbook

 

Featured Download The Effect of Artificially High and Low Marital Standards of Living on Spousal Support Awards

The Effect of Artificially High and Low Marital Standards of Living on Spousal Support Awards

The Effect of Artificially High and Low Marital Standards of Living on Spousal Support Awards

Start Reaching Potential Clients Through Divorce Source. Learn More

Guarantee Official PayPal Seal Facebook Twitter Versign Secure Site
Limited Offer Women's Rights Manual For Divorce
Cover Price: $55.95
Your Price: $29.95
You Save: $26.00

"The Absolute Best Investment in Your Divorce"

Men's Rights Manual For Divorce
Cover Price: $55.95
Your Price: $29.95
You Save: $26.00

"Uncover Your Options and Unleash Solutions"