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  1. #1
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Alimony After 5-Year Marriage

    Quote Quoting llworking
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    Of course there are no taxes on a distribution of marital property...other than taxes paid on anything that comes out of a retirement account.

    However....you still are not getting it. He gets to deduct money he pays as alimony. It reduces his taxes significantly if he does. It does not matter where he sources the money, he still gets to deduct it from his taxes. For someone who is only going to be paying alimony for two years, and someone in his marginal tax bracket, it would be ludicrous to give up the tax deduction in favor of an adjustment to the property settlement. I can see it perhaps being worthwhile in a situation where alimony could be for a much longer term, but in a short term alimony case it again, would be ludicrous.
    No llworking, I really do get it. But you are looking at strictly from the financial and tax ramifications of the agreement to make a lump sum payment as opposed to paying it out monthly as a maintenance support payment. I am not disagreeing with you based on your position. I am looking at it from a different point of view.

    I look at it from the point of view that the settlement is final. It may cost the paying spouse more but the settlement is a known figure and will not change if the supported spouse goes back to court for reconsideration.

    If in the 5 years that payments will be made, the paying spouse gets a better job or comes into a windfall or maybe wins the lottery, the supported spouse can not go back to court. And not knowing the character of the people involved, that maybe something that is of value.

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Alimony After 5-Year Marriage

    Quote Quoting budwad
    View Post
    No llworking, I really do get it. But you are looking at strictly from the financial and tax ramifications of the agreement to make a lump sum payment as opposed to paying it out monthly as a maintenance support payment. I am not disagreeing with you based on your position. I am looking at it from a different point of view.

    I look at it from the point of view that the settlement is final. It may cost the paying spouse more but the settlement is a known figure and will not change if the supported spouse goes back to court for reconsideration.

    If in the 5 years that payments will be made, the paying spouse gets a better job or comes into a windfall or maybe wins the lottery, the supported spouse can not go back to court. And not knowing the character of the people involved, that maybe something that is of value
    .
    Ah...I get it now...you are completely misunderstanding alimony. You are assuming that it is absolutely final. That is not correct at all. Any agreement for alimony can and should be written that allows alimony to cease under certain conditions. On top of that, some states even outline when alimony can cease, even if its not written into the agreement.

    You are inaccurately basing your opinion on the fact that you don't understand that conditions can and should be placed on alimony.

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