Re: Alimony After 5-Year Marriage
The bottom line is she is basically entitled to 50% of equity acquired during the marriage and potentially about 5 months alimony if any. I agree paying the 5 months up front is a good idea. Then follow state support guidelines. Have it written in to the order it should be reviewed periodically so your support can be reduced when she gets a job. They will be going to school soon so child care will not be an issue unless you allow her to move far enough away you cannot be the provider for afternoon or night shifts. Have that worked in. Make sure you get reasonable visitation also. It sounds like she might have an inkling to get a boyfriend and wants time to play on your dime as a SAHM.
Re: Alimony After 5-Year Marriage
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Disagreeable
The bottom line is she is basically entitled to 50% of equity acquired during the marriage and potentially about 5 months alimony if any. I agree paying the 5 months up front is a good idea. Then follow state support guidelines. Have it written in to the order it should be reviewed periodically so your support can be reduced when she gets a job. They will be going to school soon so child care will not be an issue unless you allow her to move far enough away you cannot be the provider for afternoon or night shifts. Have that worked in. Make sure you get reasonable visitation also. It sounds like she might have an inkling to get a boyfriend and wants time to play on your dime as a SAHM.
Where does this 5 months of alimony come from? Unlike child support, there are no formulas to calculate what alimony should or will be if left up to the court.
The spouse can ask for anything he/she wants and if the court agrees with the argument and finds it just and equitable it may be granted base on many things.
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•the income and property of each spouse, including assets awarded to the spouse in the divorce
•each spouse’s needs
•each spouse’s current and future earning capacity
•any reduction to the earning capacity of a spouse who put off education or career because of the marriage or to care for children of the marriage
•how long it will take for the spouse seeking alimony to obtain education, training, and employment
•whether or not the spouse requesting alimony can become self-supporting
•whether or not it’s appropriate for the spouse requesting alimony to seek work because he or she is the custodian of a child
•the couple’s standard of living during the marriage
•how long the couple has been married
•each spouse’s age and physical and emotional condition
•any tax consequences resulting from the property division in the divorce
•whether the spouse requesting alimony worked to support the other spouse’s education, career, or license, and
•any valid agreement between the spouses.
To name a few.
Re: Alimony After 5-Year Marriage
I disagree completely with disagreeable about the whole one month of alimony for one year of marriage. That is not the norm in any state I am familiar with. Many states use the 1 year for every three years of marriage standard.
I also disagree with the lump sum idea for one very specific reason. Adjusting the property settlement to allow for a lump sum is NOT TAX DEDUCTIBLE. Alimony IS tax deductible and that is a valuable deduction in OP's marginal tax bracket.
Lets say that he gives her 40k in total. With Bud's idea his 40k costs him 40k. If he pays it out over two years with it specifically designated as alimony, it actually costs him 26k instead of 40k, due to the tax deduction. To me, that is a no brainer.
Re: Alimony After 5-Year Marriage
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llworking
I disagree completely with disagreeable about the whole one month of alimony for one year of marriage. That is not the norm in any state I am familiar with. Many states use the 1 year for every three years of marriage standard.
I also disagree with the lump sum idea for one very specific reason. Adjusting the property settlement to allow for a lump sum is NOT TAX DEDUCTIBLE. Alimony IS tax deductible and that is a valuable deduction in OP's marginal tax bracket.
Lets say that he gives her 40k in total. With Bud's idea his 40k costs him 40k. If he pays it out over two years with it specifically designated as alimony, it actually costs him 26k instead of 40k, due to the tax deduction. To me, that is a no brainer.
The court doesn't care if a settlement is reached with the respondents and it is in the settlement agreement. A lump sum settlement is not considered alimony if it is part of equitable distribution and it doesn't have to be paid out and therefore is not taxable. It is paid as part of EQ distribution along with all the other assets. It is not specified as alimony.
Re: Alimony After 5-Year Marriage
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budwad
The court doesn't care if a settlement is reached with the respondents and it is in the settlement agreement. A lump sum settlement is not considered alimony if it is part of equitable distribution and therefore is not taxable. It is not specified as alimony.
You are not getting it. He is going to be giving her 40k (for example) one way or the other. One way or the other he is going to have 40k less. If its paid as periodic alimony it will be tax deductible. Again, its a no brainer.
Re: Alimony After 5-Year Marriage
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llworking
You are not getting it. He is going to be giving her 40k (for example) one way or the other. One way or the other he is going to have 40k less. If its paid as periodic alimony it will be tax deductible. Again, its a no brainer.
No IIworking, you are not seeing what I'm saying. If the respondents reach an agreement to have the spouse requesting alimony receive a lump sum payment buyout of alimony of what present day dollars are worth for the alimony (over the time that they would normally receive alimony), then it is over. There are no alimony payments. The payment is categorized as EQ distribution. No taxes.
Re: Alimony After 5-Year Marriage
Section 504 of the of the Dissolution of Marriage Act. It is not called alimony in IL it is called rehabilitative maintenance.
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budwad
Where does this 5 months of alimony come from? Unlike child support, there are no formulas to calculate what alimony should or will be if left up to the court.
The spouse can ask for anything he/she wants and if the court agrees with the argument and finds it just and equitable it may be granted base on many things.
To name a few.
Re: Alimony After 5-Year Marriage
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Disagreeable
Section 504 of the of the Dissolution of Marriage Act. It is not called alimony in IL it is called rehabilitative maintenance.
Whatever it is called, it supports my contention that you can buy out alimony if the respondents agree and it is over.
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e) If the parties waive their rights to maintenance,
neither party can in the future obtain maintenance from the other.
Thank you.
Re: Alimony After 5-Year Marriage
Which I also agreed was likely a better option.
Re: Alimony After 5-Year Marriage
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Disagreeable
Section 504 of the of the Dissolution of Marriage Act. It is not called alimony in IL it is called rehabilitative maintenance.
750 ILCS 5/504. It contains no such provision.