A lot of issues usually surface after a divorce. One of the most important issues that almost everyone needs to deal with after divorce is the alimony payment.
In most cases, alimony payment includes child and spousal support. But when someone needs to deal with alimony payment, you may get confused with a lot of issues and new questions.
That is why you need to know the facts about alimony payment. In this writing, we will answer some important questions regarding alimony payment. Keep reading to learn more.
What Exactly is Alimony Payment?
If you are currently dealing with divorce or child support, you may be familiar with the term alimony payment. Often time, it is also known as support payment. After a separation or divorce, one party may need to support the other in terms of financially.
In some parts of Canada, it is also called spousal or maintenance payment. Generally, family courts decide the payment structure and the requirements for alimony payment. And the payment structure is determined by a number of factors. Especially in Canada, one spouse is legally obliged to pay the alimony payment. Though this should be adjusted before the marriage if not done so, then this might create serious issues when filing for divorce.
How Does the Court Determine Alimony Payment?
Usually, the alimony payment structure depends on certain factors. First and foremost, the payment depends on the income or lifestyle of the spouse. And it is the legal obligation towards one of the spouses to pay alimony payment.
Generally, when a couple gets separated, they need to come to an agreement for alimony payment. However, both spouses need to agree upon certain conditions. But in any case, if both parties cannot come to a mutual agreement, then usually the court decides the legal obligation.
When the court determines the legal obligation, one of the spouses needs to pay the maintenance or financial support to the other spouse. There are a number of things that the court uses to determine the alimony payment support. Some of them are as follows:
- Monthly income of both parties.
- Lifestyle and the monthly expenses of both parties.
- Length of the marriage
- Health conditions and the age of both parties.
- Financial and economic condition of each spouse
- Earning capacity of each spouse
- Current condition of each spouse after the divorce and so on.
What are the Different Types of Alimony Payments?
Before discussing the various types of alimony payment, first, you need to know how the court decrees the alimony payment. What you need to remember is when you and your spouse have the same annual income, the court may not decree any sort of alimony payment.
In some cases, when the marriage is very new, the alimony payment may not be an issue. However, there are also some cases where the other party does not need any additional financial support. In such cases, the other partner is not obliged to facilitate the financial or maintenance support.
As you know that there are several types of alimony payments. Some of the common types of alimony payment are given in the following:
- Short term alimony
- Permanent or long term alimony
- Rehabilitative Alimony
- Alimony payment for the Reimbursement
- Lump-Sum Alimony
Each and every type of alimony payment are subject to discussion and negotiation between the two parties. As a result, the termination of the alimony payment is also very open and flexible. Following spousal support advisory guidelines might help to meet both of your needs.
Some Common Requirements for Alimony Payment:
Generally, all the common rules and regulations are decreed by the Internal Revenue Service (IRS). And the requirements for the alimony payment are also determined by the Internal Revenue service. And the alimony payment should meet all the necessary requirements that are issued by the IRS.
There are several requirements for the alimony payment. Some of them are given below:
- After separation, both partners need to file a separate tax return
- The payment for the alimony should be paid by money order, cash or check
- Both spouses should live apart from each other
- If the recipient spouse dies for any reason, then the payer does not have any further liabilities to continue the alimony payment.
- You may need to separate the instrument to make an alimony payment.
Taxes on Alimony Payment in Canada:
Usually, divorce has its own set of tax implications. Sometimes, those tax implications can be modified by the Tax Cuts and Jobs Act (TCJA). Under the new law of Tax Cuts and Jobs Act (TCJA) of 2017, the alimony recipient does not have to pay any federal tax on their support.
In most cases, the Internal Revenue Service (IRS) suggests that the alimony payment is tax-deductible by the payer of the alimony payment in Alberta. Even though the alimony payment tax deduction would be subject to individual circumstances.
Conclusion:
Dealing with alimony payment after the divorce can be very stressful and troublesome. But if you know how to deal with it, you can easily go through those legal processes. Additionally, the tax implication on alimony payment is also a very big issue that you might deal with.
If all of those legal terms and issues still seem quite confusing to you, then you can seek help from a professional divorce lawyer. When you work with a lawyer, half of your confusion will be dissolved by their guidance. Hopefully, this writing helped you to know the answers to some basic questions regarding alimony payments in Canada.
About Post Author
