What is the definition of “alimony”?
Alimony, also known in some states as “maintenance” or “spousal support,” is applied when one spouse earns substantially more money than the other spouse to whom they have been married for several years but have decided to get a divorce. The theory behind the alimony payments lie in the cost of one spouse giving up some sort of remunerated income for the benefit of their respective spouse. So, alimony comes with several rights and duties for both the payer and the recipient.
The concept of alimony has been around for more than 100 years, and while it is ordered less frequently these days, there is no sign that courts are going to stop making alimony orders for good.
How is the alimony arrangement reached?
There are two ways in which an alimony arrangement is reached. Either both spouses agree to a monthly amount and the length of time it will be paid or a court will set the terms for them. Unfortunately, a trial can cost a lot of time and money. Either way, a monthly amount will be set and a time period will be established. However, the period in which a spouse is obliged to pay alimony can be modified or suspended if:
- The children involved no longer need a full-time parent at home.
- A judge determines a reasonable period has passed.
- The supported spouse remarries.
- The supported spouse has not made a sufficient effort to become at least partially self-supported.
- An important event – such as retirement – occurs or,
- One of the two parties involved, dies.
On the other hand, alimony generally isn’t awarded for short marriages. Neither is it awarded when both spouses earn close to the same amounts.
Alimony recipient.
The biggest question for any alimony recipient is how much alimony should they receive? Given that this is not an exact science, it will all depend on how much each spouse earns, what is their capacity to earn and their standard of living during the marriage.
Once an amount has been calculated, the less earning partner might be required to find some sort of income sources. For example, if they have a part-time job that doesn’t pay well, they may be required to attempt to find a full-time employment in a better-paid field. Vocational evaluators are experts hired to report to court on the job prospects for a spouse who hasn’t been fully employed for a while. The evaluator will apply vocational tests and then compare the credentials obtained with potential employers in order to estimate how much income they could earn.
When receiving the alimony payments, it is highly recommended for you to maintain an organized account of payments received. These payments should include the following information:
- Amount received,
- name of the bank on which the check is drawn or the money order is issued,
- date in which the payment was received,
- a copy of any signed receipt given for cash payments,
- account number on which any check are written,
- check number or other identifying information (for example, the number of the money order),
- a photocopy of the check or money order.
Alimony payer.
When the alimony amount has been agreed upon, the person paying the alimony should keep a list showing each payment (including date, check number and address to which the check was sent). The payer should fill the original checks used for payments and be sure to write on each check the month for which the support is being paid. If payed in cash, the payer should make a receipt for each payment, and ask for the recipient to sign the receipt.
Be sure to keep these records for at least three years form the date you file the tax return deducting the payments. Some lawyers and tax advisers say you should never throw away these types of records.
Taxes and alimony payments.
Since January 1st, 2019, individuals paying alimony will no longer be able to deduct their payments for tax purposes and supported spouses won’t have to include alimony in their gross income.
If your spouse refuses to pay alimony.
Finally, if you have reached an alimony agreement but your spouse refuses to make the required payments, take immediate legal action to enforce the order through a “contempt” proceeding or an “earnings assignment order.” Orders to pay monthly alimony have the same force as any other court order, and, if handled properly, can be enforced with the very real possibility of obtaining regular payments.