In today's financially strapped times, those in the process of seeking a divorce may wonder if they will have to pay spousal support, also known as alimony, to their soon-to-be ex-spouse and if so, how much. The answer will depend on a number of factors.
In a divorce case where one party has been ordered to pay alimony, commonly referred to as spousal support, the tax implications for giving and receiving alimony may be unclear to the parties. Michigan residents may be unfamiliar with the Internal Revenue Service requirement of alimony.
In order to have an understanding of how spousal support works, one should have a basic understanding of why courts consider granting or denying spousal support. In essence, the primary reason for exploring whether or not one of the spouses in a divorce should be granted alimony is to balance any potentially unfair economic effects on one spouse.
Following the birth of a child, many couples may consider the value of one of the spouses remaining at home to care for the new addition. Where a family may have enjoyed dual income, a decision to stay at home will undoubtedly require a sacrifice on the part of both the parties. In many cases, however, when one spouse decides to quit their job, the couple may not have considered all the implications of making this decision and all the consequences that follow should the marriage fall apart.
According to media reports, actor and comedian John Cleese opened up about his divorce and spousal support obligations in a recent interview. Michigan residents familiar with Monty Python and the 74-year-old Cleese will find it interesting to learn that, according to him, despite his ripe old age, the actor apparently still has to work tirelessly in order to pay his ex-wife alimony.
Two individuals who once thought they were compatible may over the years realize they can no longer be together. When irreconcilable differences between parties arise, it may lead one of them to file for divorce. In fact, Michigan residents familiar with the music industry may find it interesting to learn that, according to recent reports, the wife of music producer, rapper and singer, Timbaland, has filed for divorce.
When couples decide to divorce, some may be able to civilly and amicably resolve their issues and have a fast, uncomplicated divorce. On the other hand, other couples may have to tackle complicated family law issues ranging from alimony to visitation, which may take longer to resolve. Regardless, divorce is not an easy process for anyone involved.
Most couples undergoing divorce hope to resolve their issues amicably without prolonged litigation. More than likely both parties want to move on with their life. Some issues they may face can range from child custody and support to spousal support or alimony. However, when it comes to alimony, the couple may have questions regarding who is obligated to pay it, what factors are considered, how much one will be ordered to pay, when, if at all, it should terminate, and how a subsequent new relationship will impact alimony payments.