During a divorce, spousal support, or alimony as it used to be called, may be awarded to the spouse who earns less money, or stays home with the children full-time, to help them maintain the standard of living they were accustomed to during the marriage. Depending on the terms of the divorce settlement, spousal support may be permanent or temporary. Typically, but not always, spousal support payments stop if the receiving spouse remarries.
The amount of spousal support can be influenced by several factors such as: length of the marriage, earning potential of both spouses, age, and child custody arrangements. Spousal support is usually tax deductible by the paying spouse and fully taxable as ordinary income to the receiving spouse. Cathy will assist you in analyzing your situation and determining how much spousal support is fair, and how spousal support payments will impact your financial situation after your divorce.