Alimony payments are made monthly by one person to their former spouse based on an order issued by the court. Alimony payments will not last forever, which many recipients tend not to realize. Often, these are considered "rehabilitative" payments. They help one of the spouses from a marriage get back on their feet following a divorce. The alimony can be used for anything, including your child's education if you so choose.
Being ordered to pay alimony to your former spouse is never an easy situation. You likely just want to be done with dealing with them since alimony is awarded when a couple gets divorced. It's important that you make the payments by their due date and do not fall behind on them or else you could risk your freedom and wind up being sent to a collection agency.
Alimony is a term that the majority of people have heard and understand even though they might never receive it in their lifetime. This term becomes very important when you or your spouse files for divorce. Why? Because it's possible that alimony could be awarded in your case. Let's take a look at why alimony is so important in today's post.
Receiving alimony is an important part of getting divorced, especially if you need it to pay for your insurance, rent, basic necessities and other items. It's also important that you properly report the alimony you receive on your annual tax return. Today, we will discuss how you can report alimony using a 1040 when you file your tax return in West Palm Beach.
Receiving alimony payments from your former spouse in West Palm Beach can help your financial situation immensely. These payments will be made to you at a specified time and amount based on the decree provided by the court. The decree will not mandate how the money should be used by the recipient. So, here are the best ways you should use your alimony payments.
If your divorce isn't going to be final before the end of the year (or if you haven't begun the process yet) and alimony is part of it, you'll be facing the new rules established under the Tax Cuts and Jobs Act (TCJA) signed into law a year ago. For the first time in over 70 years, alimony payments won't be tax deductible for payers or reportable as income by recipients.
Since your divorce, you have been paying alimony to your ex. Maybe you reached a spousal support agreement yourselves, with the help of your attorneys. Maybe you couldn't agree on an amount, so a judge had to get involved to make the decision. However it was done, your spousal support payments were likely based in large part on your financial situation and that of your soon-to-be ex.
What do you do when you finally get through all the wrangling and haggling of divorce and have everyone's obligations and rights spelled out on paper, but your ex-spouse is acting like all those orders are somehow optional?
There's a lot of talk, nationally, about getting rid of alimony as much as possible. Somehow, people have come to see it as an unnecessary holdover from the days when women didn't work outside the home.
So, you have decided to call it quits with your marriage, but you are worried about the financial fallout. You have a right to be concerned - alimony, child support, court costs - it can all add up to a large sum at the end of the day. You have to decide whether you want to fight for certain pieces of property, tally up the expenses of your divorce, find a new living situation, and adjust to a new way of life, all in a relatively short period of time. Make the most of your experience by seeking the help of a qualified financial and legal team that can help you protect your assets.