An Important Message Regarding Spousal Support in New Jersey

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An Important Message Regarding Spousal Support in
New Jersey One of the most challenging parts of
any divorce settlement is the negotiation and
ultimate agreement on alimony or spousal support.
Alimony is financial support from one spouse to
another and is usually received by the spouse
with limited earning capacity or decreased
ability to support him or herself post-divorce.
An award for spousal support can be made during
the pendency of the divorce action and becomes
permanent once the divorce is finalized. Alimony
payments are not usually forever, they are
durational, and are meant to help the non-moneyed
spouse become self-supporting and transition
financially following the divorce. For more
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Tax Treatment of Alimony Payments
The tax treatment of alimony payments has long
been a point of negotiation in divorce
settlements. Up until now, both spouses received
a benefit when an award for spousal support was
made. Under the current U.S. tax code,
individuals paying spousal support can deduct
these payments on their tax returns while the
individual receiving the spousal support must
report the spousal support as income. The
recently passed Republican tax law will eliminate
the tax break for the paying spouse, however. For
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me Alimony Payments to Spouse are Now Taxable to
Paying Spouse Effective January 1, 2019, the
individual paying alimony will be required to pay
tax on any payments made to their ex-spouse. This
change applies to any alimony orders or divorce
agreements that go into effect after January 1,
2019. For more information click here. Wills and
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Does This Change Affect the Receiving
Individual? The practical effect of this tax code
change is that the paying spouse will have less
income available to pay alimony and child support
because his or her tax bill will increase. Child
support is based on the net income of both
parents - the paying spouses net income will go
down the receiving spouses net income will
increase, and the child support payment to the
receiving spouse who is typically the custodial
parent will decrease. For more information click
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Do I Need an Alimony Lawyer?
Alimony is awarded in divorce proceedings based
on need. A wife can be ordered to pay alimony to
a husband, or the non-moneyed spouse can be
awarded spousal support from the moneyed spouse
in a same-sex marriage. The laws are gender
neutral and strictly consider the financial
circumstances of the parties. For more
information click here. Alimony Lawyers near me,
Medicaid Planning Attorney near me If you are
contemplating filing for a divorce and you think
alimony will be an issue, it is important that
you speak with a New Jersey Divorce Lawyer to
discuss the financial impact of the tax code
change on your divorce settlement. If you are
finalizing a divorce settlement, as long as you
sign the agreement by December 31, 2018, you can
keep the current tax code treatment for alimony
payments if you so desire. For more information
click here. Medicaid Planning Attorney nj,
Divorce Lawyer near me The Giro Law Firm
represents individuals in New Jersey who need to
dissolve their marriage. We provide the right
information that can help you make the best
decisions about your New Jersey divorce. Request
a confidential consultation today through our
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