Alimony

Alimony waivers in ante nuptial agreements

Alimony, or spousal support, is money paid by one spouse to another when a couple gets divorced. The general purpose of alimony is to help a spouse meet his or her needs after the marriage ends. In Massachusetts, either party to a divorce has the option to waive the right to receive alimony. When a couple’s ante nuptial agreement contains an alimony waiver, there are certain factors a court must consider in deciding whether the agreement is valid. If you are going through a divorce, consider speaking with an attorney who has experience in family law. Alimony laws can be difficult to understand. An attorney can look at your individual circumstances and help you decide whether waiving alimony is right for you. Under Massachusetts’s law, alimony can be waived by a prenuptial, or ante nuptial, agreement. An ante nuptial agreement is an agreement that a couple enters into prior to getting married. Courts scrutinize alimony waiver clauses in such agreements very closely. Essentially, in order for an alimony waiver clause to be enforceable, the court must find that: The agreement was valid at the time it is executed; and The agreement was fair and reasonable at the time of the parties’ divorce. In deciding whether an agreement is fair and reasonable, courts consider a number of factors. These factors include the age, intelligence, literacy level, earning capacity, and financial circumstances of each spouse. Courts will generally accept waivers of alimony unless one spouse will be left without enough property, income,

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What are the federal tax implications for alimony?

Many divorce settlements and court orders will include provisions for spousal support (“alimony”) and child support. Aside from questions of how these amounts are to be calculated, and additional consideration must be how each of the spouses must treat alimony sums with regard to federal and Massachusetts tax laws. This post provides a brief introduction to how the Internal Revenue Service considers alimony for federal tax purposes. The general rule is that the tax consequences for alimony payments depend on whether you are the person paying or receiving spousal support. If you are the person making the payments, you can use Form 1040 or Form 1040NR to deduct those payments from your income, while if you are the person receiving the payments then you need to declare those sums as income. Note, however, that there are conditions that the IRS imposes on what constitutes a payment of alimony, and rules that determine whether a payment qualifies as alimony. Not all amounts paid from one spouse to another will be considered to be spousal support for tax purposes. For example, the following are not considered to be alimony by the IRS: Child support (this applies the reverse of the alimony rule, meaning that the payer cannot deduct child support from income and the recipient does not need to declare such sums as income) Noncash property settlements Use of the property of the payer, or amounts spent to maintain the payer’s property Payments that are part of the community income of your

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Income inequality, alimony and divorce

Experts agree, the family structure in Massachusetts and throughout the United States is changing. A high school degree is no longer enough to land a well-paying blue collar position that promises a cushioned life. These economic shifts impact more than the number of people who are living at and below the poverty line, they also impact divorce cases, when disparity of income applies. Those who have a higher education and a college degree are less likely to experience divorce when compared to someone who only holds a high school diploma. This is due to the fact that there are often few benefits to entering a marriage when one is already successful on their own. In cases where both individuals hold college degrees, income is often equal and stressors within the marriage are significantly lower. In some situations, only one spouse brings in the income that supports both individuals and any children that they may have, even if they both hold college degrees. This might be due to the working spouse’s career choices or other circumstances that ultimately cause the unemployed spouse to stay home. When these couples experience divorce, the spouse that has been home may be entitled to receiving spousal support from the other. Contributions to the marriage are a determining factor in deciding if alimony will be required from one spouse, but a disparity in income can also play a significant role. Divorce cases in which alimony is paid are becoming more frequent with changing family dynamics and

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Massachusetts alimony law reform

One of the biggest events in Massachusetts divorce law to come down in recent years was the overhaul and reform of alimony law. This reform brings back the formerly eliminated idea of lifetime alimony. In 2012, a court order required termination of alimony benefits once the payer reached retirement age. This law was intended to apply to all payers of alimony rather than just those who divorced after March, 2012, but this was not always the case in practice. Recent appeals courts have now issued decisions to end those reform benefits. Three different decisions in January of 2105 have ended the retirement provision in these reforms for those who were divorced prior to the March 2012 cutoff date. Now, modifications to the termination of alimony that were initiated under the reformed alimony laws can only be rescinded if the former recipient of the alimony requests it. Certainly this is problematic for those left in uncertain gray areas who don’t know where they stand. The process of legislation reform regarding alimony law is ongoing, but if you are in this situation and need your rights protected, you would do well to speak to your divorce attorney. The new laws can be confusing and difficult to understand and navigate, and even if you’ve been divorced for years, a qualified divorce attorney will know how to help you best. They can explain where you stand, and help you to work within the bounds of the law to ensure that your alimony agreement remains

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What is the purpose of alimony?

Alimony or spousal support, are payments made by one spouse to the other after a divorce. Many people do not fully understand the point of alimony. Indeed, alimony can be a bit complicated to figure out under Massachusetts’s law. Essentially, the purpose of alimony is to avoid unfair financial effects of the divorce on the spouse who earned less income than the other spouse. For example, alimony can provide a source of financial support to help the recipient spouse get back on his or her feet, develop the skills and experience needed to find employment, and/or continue the same standard of living he or she enjoyed during the marriage. The specific purpose of alimony in any given case depends on the type of alimony. According to Massachusetts law, there are four types of alimony: General term Rehabilitative Reimbursement Transitional General term alimony is for spouses who are financially dependent on their former spouse. This type of alimony is paid periodically, usually on a month-by-month basis, for a set duration. Rehabilitative alimony is intended to help spouses until they can financially support themselves. Due to the nature of this type of alimony, the award is usually for a certain period of time, such as when the recipient spouse finishes a degree, completes job training, or becomes employed. Reimbursement alimony serves to pay spouses back for what they did to contribute to the other spouse’s well-being. For example, alimony can be awarded to reimburse a spouse for paying for the other spouse

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Can alimony be terminated in Massachusetts?

Alimony is received in multiple ways, including spousal support. Those in Massachusetts might wonder if alimony can be terminated. Here are some general rules for receiving and ceasing alimony. A judge is the sole individual who has the power to change general term alimony as long as there is no written agreement that specifically gives instructions for the alimony to remain unchanged. Changing the end date on orders cannot be done. The alimony agreement is usually void if the person receiving alimony gets remarried, either spouse passes away or the spouse that is providing the other with funds reaches their full retirement age. This general term alimony may also be suspended if the spouse receiving the funds lives with another individual. Most surviving independent contracts cannot be changed, unless under extreme circumstances, such as one party going into poverty without a revision. In short, your Massachusetts alimony agreement cannot be changed unless you family and are in dire need or have a unique situation. Reasons for termination are very specific and also unlikely in most cases, such as the spouse dying while paying alimony benefits to the other spouse. Alimony is a big factor with many divorces in these modern days. People often rely on that money to live on and feed their children. Likewise, some who pay alimony do not think that the people they are paying should be receiving benefits. If you have an additional question regarding alimony or spousal support, contacting an experienced attorney might be very

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Retiring may not terminate alimony

In an earlier post, we discussed the various changes that may cause alimony to end, such as if one person died or remarried. Alimony may also end when the person paying the alimony reaches full retirement age. Under Massachusetts law, there is a presumption that a person no longer has to pay alimony when he or she reaches full retirement age. Full retirement age is the age when a person is eligible to receive full Social Security retirement benefits. The retirement age is 65 for people born before 1938. For people born in 1938 or after, the retirement age goes up to 67. There are exceptions to this presumption. In some situations, a judge can order a person to continue paying alimony to his or her ex-spouse even if that person reached the retirement age. The judge must find that there is good cause to enter this order. A judge must consider a number of factors when deciding whether to deviate from the presumptive duration or amount of alimony. These factors include: The age and health of either spouse; Tax considerations; Whether one spouse provides health insurance for the other spouse; Whether one spouse has a life insurance policy naming the other spouse as a beneficiary; Any sources of income or assets that were not allocated in the divorce; Whether either spouse contributed financially to the couple prior to getting married; A spouse’s inability to provide for his or her means due to physical or mental abuse by the other

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How is alimony determined in Massachusetts?

When you are going through divorce, you may become worried when you are trying to figure out how you are going to pay for everything on your own. This can be especially troublesome for those you do not have an established career or have spent the last few years as a househusband or housewife. One way the Massachusetts courts make sure you are not left out on the streets is with alimony. Alimony is essentially financial support paid from one spouse to the other. It is typically deemed “rehabilitative,” meaning it is only paid as long as the receiving spouse needs it to become self-supporting. This can include time to get an education or training, plus finding a viable job. If they are unable to hold a good job due to physical or mental limitations, alimony may be paid indefinitely. If the recipient remarries, their new spouse is responsible for their wellbeing and alimony stops. When it comes to calculating payments, there are a few factors considered. First, the spouses’ financial, emotional and physical states are considered. This includes both the potential recipient and the payer; the courts generally will not assign alimony that leaves the payer in poverty. Next, as mentioned above, the length of time needed for training for a job is considered. Finally, the marriage itself is taken into consideration. This includes two factors: how long you were married, and your standard of living while you were together. If you have been assigned an unfair alimony, or

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