Tag Archives: spousal maintenance

IL divorce lawyerMost divorces take a number of months to finalize—six months to a year is common. During this time, one of the spouses typically moves out of the house, as continuing to live together is too much strain on the couple as well as the children. During this time, temporary orders of custody and support can be provided by the court. One of the most important and useful court orders is temporary alimony, referred to as bridge the gap alimony. This money helps the lower-earning spouse pay bills and expenses during the divorce process.

Bridge the Gap Alimony Can Pay for Rent

If the lower-earning spouse moves out of the home, they either have to rely on family and friends to house them, or they will be forced to rent an apartment or house. The average Hinsdale apartment, which is just 1,100 square feet, comes with a price tag of $1,400 per month in rent. A larger apartment or house can easily double that cost. The median rental cost (including houses) in Hinsdale is $3,500. Bridge the gap spousal support can help the lower earning spouse afford to pay rent for a suitable house or apartment that matches the lifestyle that they have grown accustomed to during the marriage.

Similarly, bridge the gap alimony can be used to pay for the mortgage if the higher-earning spouse does not jointly own the property in which the lower-earning spouse is living. The wealth of each spouse weighs heavily on all alimony decisions. If the higher-earning spouse is much wealthier than the lower-earning spouse, a court may find it reasonable for the higher earning spouse to cover the mortgage during divorce with bridge the gap alimony.

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IL divorce lawyerIf your divorce finalized on or before December 31, 2018, anyone paying alimony can claim spousal maintenance expenses to receive a tax deduction. Additionally, the recipient of the alimony will declare their payments as taxable income. However, new laws swept the nation affecting divorce judgments and modifications as of January 1, 2019. Here is how the new rules will affect you.

The Party Making Payments

If you finished signing the divorce settlement last year, the new tax laws do not pertain to you. Anyone just tying up the loose ends of their divorce or making modifications this year need to know that, going forward, any alimony paid is no longer tax-deductible.

How much you spend is also different with new calculation guidelines. Previously, maintenance payments were calculated by subtracting 20% of the recipient’s gross income from 30% of the gross income of the payor, capping out at 40% of the total combined gross income of both parties. One new change uses net income rather than the previous gross income standard. Today, a spousal maintenance payment is calculated by subtracting 25% of the recipient’s net income from 33.33% of the payor’s net income.

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DuPage County spousal support attorneyThere are a multitude of things to think about when you are getting a divorce -- where the kids will live, which one of you will remain in the family home and how you will transition to single life. If you are like most people, taxes are not very high on your list of priorities. Even so, a divorce can have a big impact on your taxes -- especially in this coming new year. In January 2019, the new tax laws will finally be put into full effect and will mean some big changes for the way divorced couples handle their taxes.

Newly-Divorced Couples Will See an Impact on Their Taxes

The Tax Cuts and Jobs Act, which was passed in December 2017, will go into full effect in 2019. The new tax code will affect about half of all Americans. In the context of divorce, the new law will affect the taxes of those who pay and receive spousal support.

This new law will be the first change in 77 years to taxes affecting spousal support. Couples who finalized their divorce before December 31, 2018 will follow the current rules on who pays taxes on spousal support. Couples whose divorces are finalized on or after January 1, 2019 will follow the new set of rules on paying taxes on spousal support.

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Hinsdale IL property divsion lawyerDivorce is financially stressful in virtually all cases. Many American families rely on two incomes to make ends meet. When you divorce, your income is reduced to your income alone, which can mean big changes for your lifestyle. In addition to having your income reduced, your expenses also tend to increase.

It is not impossible to achieve financial security after your divorce, but it can be difficult without taking the proper steps. Here are five ways you can take care of your finances after your Illinois divorce:

1. Take Inventory of Your Finances

When you are married, your finances become intertwined. The first thing you should do after your divorce is to take an inventory of your assets, liabilities, income and expenses. This will help you know where you stand when you move on to step two.

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Illinois divorce lawyerMarriage is a partnership, and spouses often make sacrifices during their relationship as they support their partner and their family. In many cases, one spouse will decide to stay home to care for children rather than pursuing career advancement, or a spouse may provide financial support to their partner as they pursue an education that will help them earn a higher salary. However, if the marriage ends in divorce, the spouse who made sacrifices is often at a financial disadvantage, and they may struggle to support themselves in their newly single life.

Following a divorce, both spouses should be able to maintain a standard of living similar to what they enjoyed while they were married. When one spouse earns significantly more than the other, the other spouse may be awarded spousal maintenance (formerly known as alimony).

Determining Maintenance in Illinois

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