Another issue to be resolved in a divorce is whether or not one spouse is to receive alimony. If one spouse earns significantly more than the other, he or she may be ordered to pay alimony. These payments help to support the other spouse after divorce or during separation. There are three main types of alimony:

• Permanent Alimony - This type of alimony is awarded after a divorce and consists of recurring payments that may change or end if the receiving party remarries.
• Temporary Alimony - During divorce proceedings or separation, ongoing payments may be awarded. Temporary alimony can include money for divorce costs and daily living, and it is paid until the court has made a determination on permanent alimony.
• Lump Sum Alimony - This form of alimony is paid all at once. Only some states allow lump sum alimony payment.

Although most alimony payments are made from the husband to the wife, in instances where the husband is a homemaker and caretaker of the children, the wife will be required to pay alimony. Individual states have different laws regarding alimony. In some, marital misconduct (in an at-fault divorce) may be taken into consideration when determining alimony payments. Other states observe a no-fault alimony policy. If you are not sure what the law is in your state, a divorce lawyer from our national network can help.

Alimony and Child Support

While child support payments are often made to provide financial assistance to the ex-spouse with custody of the children, sometimes alimony is used for this purpose instead. Child support is neither tax deductible for the payer nor taxed as income for the recipient. Alimony, on the other hand, is usually structured so that the payments are deductible by the payer and treated as gross income by the payee. For some, this arrangement may be more beneficial for tax purposes. When settling a divorce involving children, the parties generally decide how to structure child support and/or alimony payments so that taxes are reduced.

Alimony Recapture Calculators

Because alimony payments are frequently tax deductible, the government has a way of making sure alimony is not being used to disguise property settlements. If alimony payments decline by more than $15,000 dollars over the first three years, the payer will be subject to alimony recapture. This means that a portion of claimed tax deductions have to be repaid. In order to avoid recapture, you can either use an alimony calculator to figure out an appropriate payment structure or consult a knowledgeable divorce lawyer.

If you are going through a divorce and are concerned about alimony payments, contact an experienced divorce attorney today for legal and financial advice.