The Basics of Alimony After Divorce
When a couple decides to get divorced, there are many issues they have to deal with. One of the most important is alimony, also known as spousal support. Alimony is a payment made by one spouse to another spouse after divorce, usually on a monthly basis. The purpose of alimony is to ensure that both parties can maintain a reasonable standard of living after the divorce. In this article, we will look at the basics of alimony after divorce.
What is Alimony?
Alimony is a payment made by one spouse to another spouse after divorce. The payment is usually made on a monthly basis, and it is designed to help the receiving spouse maintain a reasonable standard of living after the divorce. Alimony is typically awarded in cases where one spouse was providing financial support to the other during the marriage, and the receiving spouse will need time to get back on their feet financially after the divorce.
Types of Alimony
There are several different types of alimony that can be awarded in a divorce case. These include:
- Temporary alimony: This is alimony that is awarded during the divorce process, to help the receiving spouse meet their financial needs while the divorce is pending.
- Rehabilitative alimony: This is alimony that is designed to help the receiving spouse get back on their feet financially after the divorce. It is typically awarded when the receiving spouse has the ability to become self-supporting, but needs some financial help to get there.
- Permanent alimony: This is alimony that is awarded on a long-term basis, usually until one of the spouses dies or the receiving spouse remarries. It is typically awarded in cases where the receiving spouse is unable to become self-supporting, due to age, disability, or other factors.
- Lump sum alimony: This is alimony that is awarded in a lump sum, rather than on a monthly basis. It is typically awarded when the receiving spouse needs a large sum of money to start a new life after the divorce.
Factors Considered in Alimony Awards
When awarding alimony, courts consider a variety of factors. These may include:
- The length of the marriage
- The age and health of both spouses
- The earning capacity of both spouses
- The standard of living during the marriage
- The contributions of both spouses to the marriage, including homemaking and childcare
- Whether one spouse sacrificed their own career or education to support the other spouse
- The needs of any children involved in the divorce
Modifying Alimony Awards
Alimony awards are not set in stone. They can be modified if there is a significant change in circumstances. For example, if the receiving spouse gets a new job or remarries, the alimony award may be modified or terminated. Similarly, if the paying spouse experiences a significant change in financial circumstances, they may be able to request a modification of the alimony award.
Tax Implications of Alimony
For many years, alimony payments were tax-deductible for the paying spouse and counted as income for the receiving spouse. However, under the Tax Cuts and Jobs Act of 2017, this changed. For divorces finalized after December 31, 2018, alimony payments are no longer tax-deductible for the paying spouse and are no longer counted as income for the receiving spouse.
Conclusion
Alimony is an important issue to consider when getting divorced. It is a payment made by one spouse to another spouse, usually on a monthly basis, to help the receiving spouse maintain a reasonable standard of living after the divorce. There are several different types of alimony that can be awarded, and courts consider a variety of factors when making alimony awards. Alimony awards can be modified if there is a significant change in circumstances, and there are tax implications to consider as well. If you are getting divorced and have questions about alimony, it is important to speak with a qualified attorney.