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February 1, 2008, Newsletter Issue #100: Paying Divorce Alimony
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Tip of the Week
If you are the party that may potentially be ordered to pay divorce alimony there will be some things that you want to make sure are included in any agreement or order that is issued in a divorce case. Because alimony is a way to "level" the playing field with regard to income and income potential between parties, it is usually based upon the disparity of both incomes or the potential of income. In most states, it is included in the alimony guidelines that the recipient's right to receive alimony or spousal support will be eliminated if the recipient chooses to cohabitate or remarry. Another consideration with regard to paying alimony is that alimony is treated like income, unlike child support. Child support payments neither have to be claimed for tax purposes, nor are they deductible. Alimony, however, is tax deductible. It may be of tax benefit to the payor, to term payments in the form of alimony because of this.
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