Geneva Alimony Attorney
Elgin Spousal Maintenance Lawyer
Batavia – Elgin – St. Charles – Geneva – Aurora
Tax Consequences of Maintenance
Beginning in January of 2019, for maintenance awards after that date, maintenance is no longer deductible by the paying ex-spouse or includible in income by the receiving ex-spouse. However, if certain condition is met, modifications to existing awards are still deductible and includible. This change has a significant impact on both sides of the maintenance equation. It is more important now than ever to seek the advice of a family law attorney who thoroughly understand the financial issues presented in a divorce case which may include maintenance. Please contact the Law office of Warren G. Sylvester, P.C., in Geneva.
If you have questions or concerns about spousal maintenance, talk to an Illinois family law attorney who has substantial knowledge of financial matters. Please contact the Law Office of Warren G. Sylvester in Batavia.
Four types of spousal maintenance are generally recognized in Illinois law:
- Permanent maintenance has no defined end date, but either party can ask that it be changed whenever there is a significant change in circumstances.
- Temporary maintenance may be awarded while the divorce action is pending.
- Rehabilitative maintenance may be awarded for a period of time to enable the dependent spouse to become self-supporting.
- Maintenance in Gross where a definite dollar amount of maintenance is awarded, and payments cease after that dollar amount has been paid. This type of maintenance is typically not modifiable.
Illinois courts are required by law to consider many factors when deciding whether to award maintenance, including:
- The property and income of each party;
- The needs of each party;
- Any earning capacity impairment the party seeking support suffered due to devoting time to domestic duties, or having foregone or delayed education;
- Any impairment to the earning capacity of the party against whom support is sought;
- The time that may be required to allow the party seeking support to become self supporting;
- The standard of living established during the marriage;
- The duration of the marriage;
- Age, physical and emotional condition, occupation, employability, liabilities and needs of each party;
- Any sources of public or private income;
- Tax consequences of property division;
- Any contribution and services by the party seeking support to the education, training, career or licenses of the other;
- Any valid agreements of the parties; and
- Any other factor the court expressly finds equitable.
Maintenance Is Not an Entitlement
If you are the one seeking maintenance, the court will want to see evidence that you are making attempts to become self-supporting. Even if you played the enabling role during the marriage, divorce changes everything. It is important for you to demonstrate your abilities and realistic career goals. Otherwise, a judge may deem you capable of earning an income that is unrealistic.
Tax Consequences of Maintenance
Child support is nondeductible to the payer and nontaxable to the recipient. A combination of child support and maintenance can make a huge difference in tax rates for both payer and recipient.
If you are involved on either end of the child custody and maintenance equation, it is important that you seek the advice of a family law attorney who thoroughly understands the financial issues. Please contact the Law Office of Warren G. Sylvester in Batavia.
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