One of the aspects of divorce that take some getting used to is this entire concept of alimony. To learn the ropes of how alimony spousal support law works, there are a few tricks of the trade to be aware of. Sometimes the one who has to pay the alimony required after a divorce feels that the laws are there to victimize him. But the rules are there to protect both spouses so both are financially supported but neither is driven into bankruptcy by divorce spousal support.
Once the divorce spousal support rules for your divorce are in place, you must comply with them in detail. Both spouses should retain separate legal counsel and only listen to that lawyer's advice about handling alimony spousal support law. In that way, you know your interests are being protected and you will get through the alimony maze with as little anxiety as possible.
Rule #1 - Pay by Check
Even if your divorce was friendly and you may have feelings for your spouse, trust goes out the window when it comes to accounting for your alimony required by a divorce. The one who gets the alimony is not required to document the payment, give a receipt or tell the truth about when or if you paid. If you pay by check, you can make a copy before you send it and then get an image of it after it clears the bank. Even if your bank does not routinely send back your checks with your statements each month, you can request a copy of that check each month so you keep a meticulous record that you paid in the event of a dispute.
Rule #2 - Obey All the Rules
How your divorce is to be managed will be spelled out in detail by the divorce decree and by other documents like the temporary order, the divorce judgment, the order pendent elite or the separation agreement. Among many other details, the steps that you must follow to stay up with your alimony required divorce papers will be detailed there. Be very careful to live up to that document in every detail because there is no "wiggle room" in the application of those documents.
Rule #3- Alimony and Taxes
If you are going to be paying the alimony, that is a tax deductable expense for you. The one receiving alimony must pay taxes on that income. Neither spouse should agree to any verbiage the divorce spousal support agreement that does not adhere to this tax structure. This is one of the few quirks of the alimony spousal support law that is good for the one who pays. When you have large alimony payments to make, that can be a boon to your tax picture. So make sure you protect that part of your divorce spousal support agreement because it can mean a lot coming back to you at tax time.
Rule #4 - No Shared Quarters
This is also an aspect of how the IRS views alimony payments. Some couples have a cozy relationship after a divorce or decide to share expenses by living together. In order to stay in complaisance with the IRS rules in regards to the alimony spousal support law, you should be living in separate residences. Otherwise, you could lose that alimony deduction that is such an important part of how your financial planning will work when dealing with divorce spousal support.
Rule #5 - Death Ends Things
This may seem like an odd guideline but make sure that the verbiage of the divorce spousal support agreement is specific that upon the death of the spouse getting the alimony required by divorce, the payments end too. If you don't make sure that language is there, a legal will could pass those alimony payments to a beneficiary and you might never be able to stop payment. The alimony payments should also stop if the payer should pass away or if the one receiving the alimony gets remarried. In some cases, you can have the alimony stop if the receiving spouse gets engaged or starts to live with a new partner of either gender.
Rule #6 - What Alimony Isn't
Child support is another kind of payment entirely that is separate and above and beyond alimony required divorce payments. Those payments should be separate and even paid with a separate check so you have clear documentation of both. In fact, when reviewing any alimony required divorced or child support agreements, try to make the payment dates separate as well. Also the termination rules that the various legal documents will lay out for alimony and child support should be separate and distinct from each other. While child support usually ended when the children are on their own, alimony termination is set by another set of standards as we discussed above.
Rule #7 - Don't Get Creative with the Payments
We know that the IRS is quite particular about how alimony payments are handled. So you must pay the amount of the payment on the time of the payment without variation. That means you do not try to pay higher payments up front for a year or two in hopes of getting a smaller payment in place down the road. Conversely don't try to pay too little or negotiate for a lower payment on the anticipation of paying more later. While there are specific cases where staged divorce spousal support payments are varied like that, they are the exception rather than the rule. So play by the rules, make those payments on time and every time and you will do fine with the alimony spousal support law, with the IRS and with your ex as well.
