The Law Offices of James A. Cuddy, LLC

Taxes, mediation are very important when dealing with alimony

Alimony can be a very divisive matter in divorce. Sometimes, the splitting spouses are able to negotiate which spouse pays, how much, and how often -- but sometimes that simply isn't possible. It may be that the divorce is high net worth, and thus the two spouses can't agree on how much alimony should be paid. It may be that the emotions and anger involved in the divorce prevent the spouses from negotiating fairly and properly.

In these cases, the spouses may turn to divorce mediation to help solve the issue. Mediation can help the spouses get over the hurdle in their divorce and reach an acceptable agreement on a number of issues -- not just alimony.

However, there are two other factors about alimony that divorcing spouses need to know about. The first is that alimony is calculated by the courts using a number of elements. The needs of the spouses, the division of other marital assets, the earning capacity and history of the spouses and the length of the marriage are just a few of the things that will be considered.

The other factor about alimony is that, depending on the spouse, the tax implications of that spousal support will be different. The receiving spouse will have their alimony money taxed, but the paying spouse can deduct the alimony payment from their taxes.

Ultimately, alimony is a very important divorce matter, and it behooves the splitting spouses to consult with their family law attorney to ensure the matter is being handled properly.

Source: Huffington Post, "4 Things To Know About Filing Your Taxes After Divorce," Lauren Young, Reuters, April 10, 2014

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