In years past, the majority of women did not work outside of the home. As such when a couple divorced, the woman was almost always awarded spousal support or alimony payments for the rest of her life. Today, a large majority of married women work outside of the home. Despite societal changes in how income is earned and shared, many states have failed to update laws pertaining to spousal support.
New Jersey lawmakers to consider alimony reform
New Jersey legislators have not significantly amended the state's alimony statutes for more than 30 years. Two bills that have already passed the New Jersey Assembly and Senate judiciary committees, however, may put an end to the longstanding status quo for alimony issues in New Jersey divorce cases.
How you feel about this depends on which side of the aisle your finances put you on. If you have already been ordered to pay support to a former spouse or are likely to be, the changes could benefit you tremendously. If you're currently receiving alimony pursuant or would be likely to receive it in a divorce, you probably won't like the proposed reforms one bit.
The tax implications of alimony
Spring is generally a happy, optimistic season in New Jersey, complete with warm weather, increasing sunlight and the seeming promise of a fresh start. Unfortunately, spring also contains one unpleasantness: the federal income tax filing deadline, which falls this year on April 17.
If you have gone through a divorce this year, you may feel more confused and overwhelmed by your taxes than ever before. However, depending on your financial situation, your taxes will probably be less complicated than you are anticipating.
Is it possible to receive the child, spousal support you deserve?
When a couple divorces, one spouse may be responsible for providing financial support to the other spouse. In New Jersey, child support or alimony may be awarded to the spouse who makes less money. Child support is designed to help single parents pay for the daily living expenses of raising a child as well as the unique needs of their children, but many parents do not receive the support they are promised.
According to the U.S. Census Bureau, less than half of the parents who are owed support actually receive the full amount. About one-third receive only a portion of the total amount due, and nearly one-quarter do not receive any of the child support they are owed.
Is there anything divorced parents can do to receive that money, or are they simply out of luck?
Continue reading Is it possible to receive the child, spousal support you deserve?
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New Jersey may see alimony reform
Following another state's recent overhaul of its alimony system, New Jersey may take similar steps to change the way courts determine and award spousal support. Under the current system, an individual who is undergoing divorce may be ordered to provide his or her spouse with permanent alimony. Detractors of this system say that it unfairly punishes those who wish to end their marriages, turning what could be an easy and peaceful process into a dispute that leaves former spouses as lifelong legal enemies.
An organization called New Jersey Alimony Reform says the goal of the reform is to update what it sees as outdated rules that are still based on the assumption that a husband will provide a family's primary source of income.
Tax tips for divorcing couples in New Jersey, part two
In a recent post, we wrote about the implications divorce can have on individuals' tax returns. Although most people in New Jersey have already filed their tax returns, there are steps you can take to help ensure you maximize your returns for the upcoming years.
The last post discussed some of the things couples should be aware of when they're actually divorcing, including marital status and who actually gets to claim the kids. Now we will discuss the long-term implications alimony and child support payments can have on your tax return.
Alimony is an investment into the future
Alimony can serve as a payment for a spouse who has sacrificed their earning potential for the good of their family during a marriage. Alimony, however, should be viewed as an investment into the future, as opposed to a paycheck.
In New Jersey, the amount of alimony may vary depending on what is provided in a divorce settlement. The lifestyle led by the couple prior to divorce is one of the main factors in determining the alimony amount. Contribution to the marriage and the duration of the marriage also play a factor in determining the amount of an alimony payment.
