Exploring the new provisions of the Tax Code regarding the coming nondeductibility of alimony
Given Florida’s popularity as a retirement destination, the issue commonly comes up about how to structure alimony when divorcing parties are nearing retirement age. This is a multifaceted question of some complexity.
The Tax Cuts and Jobs Act has many controversial provisions, but one will have significant impact on many divorcing couples. The new tax law makes an unexpected change to a tax arrangement that has been central to American divorces for three-quarters of a century.
The concept of "men's rights" in marital law stems from the apparent historical preference of family courts to grant mothers custody rights over the children, relegating fathers to holidays and weekends.
It was not only hurtful but also insulting when you found out that your spouse was cheating on you. You knew that you wanted to get a divorce immediately, because you could never forgive him or her for doing so.
As a man in an unusual situation, it's important that you understand alimony. You may have been a stay-at-home father, or perhaps you put your career on hold for your spouse. Whatever the reasons were, if you're not where you wanted to be in your career, alimony is one way that your spouse can make up for that.
When you're going to be paid or going to pay alimony, there are records you should keep. Preparing for what you need now can help you avoid trouble later. These records are important for your own recordkeeping as well as for the courts and your taxes. Alimony is tax deductible for the person paying and needs to be reported by the person receiving it so that he or she can pay taxes on the sum.
Although you may not want to pay spousal support to your spouse upon divorce, it's important to recognize the purpose of it. Spousal support, also known as alimony, is awarded to help limit unfair economic effects of a divorce. For instance, if you have been the sole provider and your partner was a stay-at-home parent, then alimony may be paid to help your partner while finding a job or going back to school to start a new career. Alimony may also be awarded to help your spouse continue to live at the same standard that you do now.
When you are facing the prospect of divorce, one of your main concerns may come down to money. If you've been a housewife or househusband, you may not have a career to support you. Even if you get a job, there's a chance it won't pay as much as your spouse currently earns.
You've been living with your spouse for many years, and your finances are intertwined. You stayed home to watch your children more than your spouse, so you only worked part-time. Now, you're in your 50's and your children have finally moved out of your home. You thought this was when you'd get back to living in a way that celebrated your spouse and your achievements and life together, but your spouse wants to get a divorce. You aren't sure if you should ask for alimony or not.