When most people say the word “I do” and promise to love their spouses for better or worse, they often overlook the fact that at some point in the future, they might have to part ways with their partner due to unforeseeable circumstances. For many couples divorce has become a bitter and unfortunate reality. It is a path that they must traverse when the two are faced with issues that can’t be resolved.
There are two types of divorce cases, contested and uncontested. A divorce case is contested when both sides fail to meet on every one of the particular issues involved in their particular situation. Some of the common grounds of disagreement include custody of children, child support, division of assets of the marriage, alimony (maintenance), contribution toward educational expenses, income tax structuring, payment of family debts, health insurance of dependant partner, and many other facets.
A divorce may also be a “no-fault divorce” or a “fault divorce”. In the first case, both the parties agree to irreconcilable differences and neither party is at fault for the marriage not working. In case of the latter kind of divorce, one of the parties is cited as the one to be blamed for the failure of the marriage.
The faulty partner is not entitled to alimony under law. The “faults” may include infidelity, felony, alcoholism, drug abuse, etc.
Alimony is a court ordered spousal support payment from the spouse who earns the greater income. In situations where both couples are employed usually do not merit alimony, although this varies widely from state to state and the particular circumstances. Alimony laws help a spouse to gradually ease into their new life, and it prevents a person from having to bear a drastically lower standard of living after divorce.
Some of the factors that a judge may consider before issuing a court order for alimony are length of marriage, level of economic dependence of one spouse on the other, respective ages and their conduct in court.
In cases where the partner entitled to alimony also has the custody of the couple’s children, the alimony amount must also include child support payments. Before the amount of alimony is determined, it is pertinent that the assets of the marriage are divided equally or in a fixed proportion, depending on the law of each state.
The good news about alimony is that it qualifies as a tax deduction for the spouse who pays it. The downside for the spouse receiving the alimony is that he/she must pay tax on it. Child support on the other hand is not taxable for either party. Thus, when seeking divorce, it is advisable to pay alimony irrespective of the judge’s ruling. This is one way of keeping divorce costs low. While considering divorce, keep your present financial situation and long-term tax goals in mind. It will help keep divorce-related costs down and make coping with divorce easier for both of you.
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