Macomb County Alimony

Alimony

Alimony is often discussed in popular culture as one of the worst aspects of a divorce. However, when alimony, or spousal support, is structured properly, it can be an important aspect of creating a fair divorce settlement that is favorable to all parties.

Several factors are used to determine alimony awards. Two of the most important considerations are how long the couple was married and the respective income of each party. This means that, in general, a spouse who provided the majority of the financial support in a long-term marriage will be more likely to pay alimony than a spouse earning equal income in a marriage that only lasted a few years.

Alimony is Tax Deductible

Alimony is taxable to the recipient. A person who pays alimony can deduct the payments from their taxable income. A properly drafted alimony agreement, as part of an overall property settlement, can be a benefit to both parties, particularly when the recipient is a lower tax bracket earner in need of income from a payer who is a higher tax bracket earner in need of deductions.

Within the limits of the law and in conjunction with tax professionals, Chris Aiello has structured hybrid alimony and property settlement awards that secure tax benefits not present in a simple property settlement.

Most Alimony Can be Increased or Decreased after a Judgment is Entered

Alimony awards can be modified in the future unless the couple expressly agrees to non-modifiable alimony. When alimony is non-modifiable, it may sometimes be paid all at once in a lump sum.

There are risks and rewards to both non-modifiable and modifiable alimony awards. A person paying non-modifiable alimony will be required to make the same payments even if their income decreases. A payer of modifiable alimony is able to petition to reduce payments if his or her income decreases. However, if the alimony payer has increased income, no increased payment is permissible under a non-modifiable settlement, whereas an increase is possible under a modifiable award.

One benefit of non-modifiable alimony is that the person receiving the award knows the amount will not change if the payer’s income decreases. However, this means the recipient will also continue to receive the same award amount if the payer’s income increases.

Modifiable alimony awards can be increased if the receiving spouse faces unforeseeable issues such as major healthcare costs or an unexpected job loss. Recipients of non-modifiable alimony are not able to ask for increases, even in these circumstances.

We Offer Skillful Alimony and Property Settlement Negotiations

Some recipients are offered alimony in exchange for property settlement concessions. This may be a good idea for a long-term payer but not for a long-term recipient unless the award is non-modifiable. For example, it would be a bad idea to permanently trade away a valuable asset, such as a business, for a modifiable alimony award that could be reduced after judgment enters.

Alimony is a complex issue that becomes even more daunting when issues of modifiability are thrown into the mix. If you are the primary breadwinner in a long-term divorce, call Chris Aiello to discuss options. If you are a secondary breadwinner or a dependent in a long-term marriage, Chris Aiello will be happy to discuss an alimony proposal that meets your long-term needs.