The overhauls to the tax system that went into effect last year have made matters a bit more complicated for divorcing spouses. Under the new system, alimony payments are no longer tax deductible for the person paying them, and are no longer considered taxable income for the person receiving them, which reverses a practice that had been in effect for…
Whether or not to marry is a huge decision. The person you choose to marry will most certainly affect your career and wealth. Maintenance (formerly alimony in New York) takes into consideration how one spouse may have affected the other spouse’s career. If one spouse withdraws from the workforce to care for young children and this continues for many years,…
Last year’s federal Tax Cuts and Jobs Act may have had corporate executives cheering, but the same can’t be said for people about to divorce. As an article this summer in Forbes explains, the act means divorce is likely to get much more expensive once the clock strikes midnight, ushering in 2019. If you don’t finalize your divorce before the…
A recent article in The New York Times indicates that under the new Republican tax law, there may be an incentive for wealthy Americans pondering divorce to rush to get it done before 2018 is over. The primary reason for this is that the new Tax Cuts and Jobs Act will eliminate the previously existing tax breaks for alimony payments…
In New York, spouses can receive either temporary or permanent alimony during and after a divorce, depending on the circumstances of the marriage. To determine if alimony is appropriate in a case, the judge carefully analyzes the needs of the spouse seeking the support and whether the potential payer is financially capable of providing that assistance. Other factors that go…
There’s a chance you could be awarded alimony as a part of your divorce settlement. In this arrangement, you may have a choice between getting an upfront lump sum payment periodic payments spread out over time, especially if that alimony arrangement will be a short-term one. Although most people have periodic alimony arrangements, there are some reasons you might consider…
Did you know your alimony payments could be tax deductible, so long as you follow certain Internal Revenue Service (IRS) rules? If you pay alimony and abide by these guidelines, you could save a lot of money on your tax bill. The following are the seven requirements to which you must adhere to deduct your alimony payments from your taxes:…
Like any other aspect of your divorce, you can negotiate an alimony arrangement outside of the courtroom. Doing so allows you to have more control over your future, while also avoiding the expensive, time-consuming process associated with litigation. Each spouse in a divorce must provide certain financial disclosures at the outset of the divorce, even if it’s obvious which spouse…
New York State recently reformed many aspects of its Domestic Relations Law, including rules for permanent alimony. The new law creates an advisory schedule for the duration of permanent alimony based on the length of the marriage: From 0 up to and including 15 years — Alimony may last anywhere from 15 percent to 30 percent of the marriage’s length.…
A dependent spouse in a divorce action is generally entitled to temporary spousal maintenance, also called pendente lite alimony. However, since New York State reformed its alimony laws, courts have been asked to give greater scrutiny to how much alimony is awarded and for how long. Traditionally, temporary spousal support has run until the court issued a final divorce decree…