Out of the different types of financial matters that couples will need to address during a divorce, spousal support can often be one of the most contentious issues. While parents will usually recognize that child support will be necessary to provide for their children’s needs, and couples understand that they will need to divide their marital property fairly and equitably, a spouse may be unhappy about the requirement to make ongoing payments to their former partner. However, there are situations where this form of support may be necessary, and it is important for spouses to understand how the laws that address this issue will apply in their case.

When addressing matters related to spousal support and other financial issues during your divorce, you can improve your chances of achieving a positive outcome by working with an experienced divorce attorney. Your lawyer can explain your rights and ensure that all financial factors in your case are considered properly, and they can act as your legal advocate, making sure your rights and interests will be protected in the decisions that are made.

Spousal support, also known as maintenance, is court-ordered payments one spouse pays to the other spouse after a divorce.

The 750 Illinois Compiled Statute 5/504, titled ‘maintenance’ states that  “the court may grant a maintenance award for either spouse in amounts and for periods of time as the court deems just, without regard to marital misconduct, and the maintenance may be paid from the income or property of the other spouse.”

Ordered Maintenance

Sweeping tax reform legislation was passed by the United States Congress in December 2017, with the Tax Cuts and Jobs Act representing the largest change to the federal tax code in the past three decades. The changes implemented in this bill will have an impact on people across the country in a wide variety of ways, and both individuals and organizations are still working to determine how they will be affected. One area of this bill that divorcing spouses should be aware of is a major change to how spousal support (alimony) will be taxed.

Taxes on Spousal Maintenance

When spouses divorce, one spouse may be required to pay maintenance to the other spouse, allowing them to maintain a lifestyle similar to what they enjoyed when they were married. This is usually the case when one spouse earns a higher income or when a spouse has chosen to devote their time and energy to the family rather than to further their career. Prior to the tax reform bill, the spouse paying maintenance would deduct the amount of these payments from their taxable income, and the spouse receiving maintenance would pay taxes on these payments.