When a couple files for divorce, spousal support may be awarded by the court to one of the spouses. Spousal support, which is also known as alimony, is meant to compensate for the financial damages that divorce and separation can cause.
In most states, spousal support is not mandated and may not be awarded in every case, in contrast with child support. Instead, it depends on the court’s discretion whether spousal support will be awarded or not. In general, spousal support will almost never be awarded to the spouse who earns the higher income. The spouse who has no source of income or earns a lower salary may be likely to be awarded spousal support payments.
Often, spousal support is only temporary. Usually, the court sets a date in which the support payment will end. This date is based on the amount of time estimated by the court for the recipient spouse to become self-sustaining. Also, if the recipient spouse remarries, most support will also be terminated.
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However, there are cases wherein spouses can receive support payments for the rest of their life. In some cases, alimony may continue even after the death of the paying spouse. Awarding of the payment of spousal support depends on many factors such as spouses’ age, the duration of the marriage, the standard of living for the duration of the marriage, and the physical, emotional and financial condition of both spouses.
All about Taxes
Since it is received in payment intervals over a specific time frame, spousal support is considered income for the recipient and a deduction for the spouse who pays it.
All payments must be declared by the recipient spouses as a fraction of their income and they will be taxed on the alimony. Because the spouse who pays alimony gets a tax deduction, the court will take this into account when establishing the amount of the support payment.
One exception to this support tax rule involves lump sum payments. A deduction does not apply if support payment was paid in one lump sum.
What To Do When a Spouse Is Not Paying
If your spouse is not paying alimony, the only course of action you can take is to contact your attorney and file a suit for contempt of court. The court will subsequently force payment and impose legal measures for you to receive the alimony you were initially awarded.
If You are the Payee
It is never right to withhold support payment from your spouse. If you are ordered to pay spousal support, it will be best to abide by the court’s decision because if you do not pay, legal actions can be taken against you. Also, this can result to a more difficult and lengthy divorce process.
It is important to remember that making spousal support payments may actually be advantageous on your part. Every tax deduction matters if you are earning a high income. It can provide you with considerable tax benefits if alimony payments are deducted from your income.
Read this post on how to lessen divorce costs.
