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Alimony FAQs Various types of financial obligations are owed as a result of divorce. Some of the more frequent terms and definitions include:
How are support payments treated under federal income tax rules? Child support payments are typically not deductible from the income of the payer and are not included as taxable income to the supported spouse. Alimony or spousal support payments are tax deductible by the payer and taxable income to the supported spouse. What factors can be used to determine the amount of alimony? Some of the factors (which vary from state to state) used to determine the amount of alimony to be paid by one spouse to the other include:
Legal separation has certain income tax advantages with respect to deductibility of spousal support payments. It is sometimes an alternative to divorce for religious reasons. Sometimes it is preferable to a divorce for purposes of insurance coverage. Often it is simply used as a trial for the couple to consider the possibilities of reuniting or divorcing. How long will alimony be ordered? Alimony is ordered to be paid during the time period that the supported spouse is seeking education, training, and marketable job skills in order to establish a career or otherwise become self-supportive. Consideration of the responsibility for providing child care during the early years of a minor child factors into this determination. In some instances, depending on the age and health of the supported spouse, it could be permanent. In addition, typically a court order for alimony terminates upon the death or remarriage of the supported spouse. Can medical insurance be included in alimony? Often. In a case where the supported spouse depended upon the other spouse for health insurance during the marriage and does not have sufficient means to obtain such insurance, the court may require the payer spouse to continue to provide medical insurance. Alternatively, the amount of alimony can be increased so that the supported spouse will have the ability to purchase medical insurance. If you or a loved one is in need of legal assistance, call Goidosik, Morse & VanDeusen PLC toll free by dialing (800) 968-5566. The initial consultation is free of charge, and if we agree to handle your case, we will work on a contingency fee basis, which means we get paid for our services only if there is a monetary recovery of funds. In many cases, a lawsuit must be filed before an applicable expiration date, known as a statute of limitations. Please call right away to ensure that you do not waive your right to possible compensation. |
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