Its tax season once again and, starting Monday, the Internal Revenue Service is ready to process your tax return. As you prepare your 2019 taxes, there are changes to the tax treatment of spousal maintenance to keep in mind. The Tax Cuts and Jobs Act enacted new tax rules regarding spousal support payments, also known…Read More
Life Insurance Benefits Protecting Child and Spousal Support
Child support is often awarded in a divorce to support minor children. If children are very young at the time of the divorce, a payor may be obligated to pay child support for many years to come, sometimes throughout their college years. Of course, a lot can happen over the course of 10 to 20…Read More
Calculating Illinois Spousal Maintenance Effective January 1, 2019
Maintenance payments (aka alimony or spousal maintenance) may be granted by the court during a proceeding for the dissolution of marriage, legal separation, declaration of invalidity of marriage, or dissolution of a civil union. Awarding maintenance payments a spouse may be appropriate depending on factors such as the income and property of each party, present…Read More
Job Loss – Child or Spousal Support Modification
If you are paying spousal maintenance or child support following a divorce, you may wonder what happens if you lose your job. You may be surprised that you could be obligated to pay whatever you were paying while employed, so it is important to discuss your circumstances with an attorney before you assume anything. There…Read More
2018 Divorce Grandfathers Alimony Tax Deduction for Many
If there was ever a good time to divorce, 2018 is it…especially for wealthy Americans. That is because of the new tax law, effective January 1, 2019, that eliminates the tax deduction of alimony payments. Financial planners and attorneys alike are warning wealthy clients to get a move on if they are contemplating divorce, because…Read More
New Tax Law Impacts Keeping the Family Home in a Divorce
The recently enacted tax law, effective January 1, 2019, will have a number of impacts on divorcing couples. The new tax law not only eliminates the tax deductible allowance of spousal maintenance for payers, but will also have implications on the valuation of closely held businesses and property tax deductions. Alimony Under the New Tax Law…Read More
Lump Sum Spousal Maintenance Offers
Permanent periodic spousal support is often awarded when a couple is married for many years before the divorce and the lesser earning spouse is unable to achieve a lifestyle comparable to the one enjoyed during the marriage. This is often the case when one spouse gives up a career to raise children for many years…Read More
‘Manimony’ aka Alimony for Men
As women’s career opportunities increase and their earnings become greater, they may be on the hook to pay alimony to their ex following a divorce. In a sign of the times, ‘manimony’ is on the rise, a nickname used to describe the rise of alimony payments made to men. In 1979, the general notion that…Read More
Alimony Tax Deductions Disappear
The Tax Cuts and Jobs Act of 2017 signed into law last month will change the tax treatment of alimony payments for couples divorcing after December 31, 2018. Currently, the payor of alimony deducts spousal maintenance payments from their taxes and the recipient claims the amount received as income. The arrangement, as it stands, benefits…Read More
Determining Child Custody and Support for a Disabled Child in a Divorce
When there is a child with special needs involved in a divorce, issues of child custody, visitation, child support, spousal maintenance and property division are significantly more complex. As a guiding principle, courts consider what is in the best interest of the child when deciding parenting time arrangements, aka child custody and visitation. However, determining…Read More
