We Listen. We Help. We Care.

Will spousal support be part of your divorce?

On Behalf of | Sep 28, 2017 | Divorce |

During your marriage, you and your spouse may have pooled your resources in order to keep up the lifestyle you enjoyed here in Connecticut. Now that you and your spouse have agreed to part ways, some financial adjustments will be necessary. Depending on the circumstances, you could either pay or receive spousal support as part of your divorce.

As you work to come to a resolution regarding alimony, you may need to gather more information about how it could affect your finances post-divorce. The tax ramifications of spousal support differ, depending on whether you receive it or pay it. If you pay it, you may be able to deduct it from your income taxes. If you receive it, the IRS considers it income, so you will need to add it to your gross income when you file your income taxes.

There may be ways to divide your assets that could limit the amount of alimony paid and, thus, lower the amount of taxes the recipient may need to pay. In fact, you may need to consider the tax implications of every asset that you and your soon-to-be former spouse will divide as part of your divorce. Many Connecticut couples end up in trouble because they fail to consider this area.

Whether you are looking at the issue of spousal support or are dividing assets, it would greatly benefit you to gain an understanding of the taxes associated with each asset, along with how your property division will affect you in the future. Without the whole picture, you could jeopardize your financial plans. An attorney who not only looks to help you with your short-term goals in your divorce, but your long-term goals as well, could provide you with invaluable assistance as you prepare for your new life.