What happens to alimony payments when the child becomes an adult?

What happens to alimony payments when the child becomes an adult?

So be sure that alimony payments are not tied in any way to support of your children. For example, if you agree that alimony will end when your child becomes an adult, you run the risk that the IRS will reclassify past alimony as nondeductible child support. The IRS would disallow your past alimony deductions, and you would owe back taxes.

What are the rules for a tax deduction for alimony?

The IRS imposes seven requirements on taxpayers seeking to deduct alimony payments: 1. Make payments in cash or by check. 3. Don’t characterize payments as child support or a part of a property settlement. 4. Specify that payments end at the recipient’s death.

Can a judge order an ex spouse to pay alimony?

Alimony may be ordered by a judge as part of a divorce decree, but it must be awarded in accordance with your state’s laws. Your ex-spouse’s requirement to pay alimony is usually terminated by state law when either of you dies unless your divorce decree states otherwise.

What are the rules for alimony and spousal support?

For example, if a paying spouse earns $60,000 per year and the recipient earns $40,000 per year, the court may order spousal support payments to balance out each spouse’s finances. If the paying spouse sends the recipient a total of $10,000 per year in alimony, the result is that both spouses receive a total of $50,000 per year.

How often do you have to pay alimony after a divorce?

Alimony payments are your court-given claim to a certain amount of money from your spouse every month. The court doesn’t take payment deficits lightly and offers options to help fully protect your rights after a divorce.

Can a court extend alimony after ten years of marriage?

If your settlement agreement designates that the alimony is non-modifiable, the court will not retain the right to extend alimony beyond the time specified, even if your marriage was longer than ten years. Similarly, you and your spouse may include a mutual waiver of alimony in your divorce agreement.

Can a former spouse reduce the amount of alimony?

A former spouse may also be eligible to receive Social Security benefits which parties could agree would reduce the amount of alimony. Parties entering into a settlement can also build in a disaster clause to provide for reduction if a payor has an involuntary reduction in income, e. g ., for medical reasons, a job loss or a forced retirement.

How old does a woman have to be to collect alimony?

Collecting alimony will offset the Social Security benefits, but she is still eligible to file on your record as long as she is not remarried and is at least 62 years old. The other stipulation is that she must receive more money based on your record than on her own.