1. What is alimony?
Alimony is a form of financial support that one spouse may be ordered to pay to the other after divorce or separation. It is intended to help the lower-earning spouse maintain a similar standard of living as during the marriage. Alimony can be temporary or permanent, depending on the circumstances.
2. How is alimony determined?
The court considers several factors when determining alimony, including:
The length of the marriage
The financial and non-financial contributions of each spouse
The recipient spouse’s need for support
The paying spouse’s ability to pay
The standard of living during the marriage
The recipient spouse’s ability to become financially independent
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3. How long does alimony last?
Alimony duration depends on the specifics of the case. It could be short-term, lasting until the receiving spouse is capable of supporting him or herself, or it could be long-term, particularly in longer marriages. Alimony sometimes terminates on the remarriage of the receiving spouse or death of either spouse.
4. Is alimony taxable?
Alimony tax treatment is determined based on the date of divorce according to the relevant laws. Where divorce was finalized prior to 1 January, 2019, the former spouse can pay alimony minus its amount, which the recipient will report to their taxable income. In divorce finalized after that date, both the payer cannot deduct and the recipient cannot exclude them from their tax income.
5. Can alimony be changed or ended?
Yes, by modification or termination due to a material change in circumstances, such as a change in income, the recipient spouse becoming self-sufficient, the payer’s financial hardship, and so forth. However, any modification or termination must be entered by court order.
6. Alimony can be waived or agreed upon outside of court?
Yes, spouses can reach a mutual agreement on alimony terms, and this can be reflected in their divorce settlement. The agreement can be included in a divorce decree, but the court will still need to approve it to ensure it is fair and reasonable. If the parties do not agree, the court will determine alimony based on the relevant laws and factors.
