It is true that divorce is declining across the United States, but the rates of gray divorce are increasing. Gray divorces are those that occur when a person is over the age of 50. When considering divorce as a person gets older, many think that it is going to be simpler. After all, there often are not issues such as child custody or child support to consider.

However, there are other issues to think about in gray divorce, and these issues do not come up with other types of divorces. Two main issues, in fact, are more present in gray divorces than any other. Those factors are spousal maintenance and retirement accounts.

Spousal Maintenance

Many divorces in Illinois do not involve alimony or, as the state refers to it, spousal maintenance. Maintenance is typically only awarded when the divorce is going to leave one spouse at a significant financial disadvantage. For example, if one parent stays at home to raise the children while the other advances their career, the courts will likely award the stay-at-home parent spousal maintenance so the stay-at-home parent is not left in financial hardship after the divorce. When maintenance is awarded under these circumstances, it is typically just temporary.

If you are like other men facing an inevitable divorce, you are likely dealing with a lot of frustration and confusion. Divorce can be a slow and painful process, or it can happen so fast you are not sure how it even came up. Many men assume a lot of things about divorce – whether true or not – simply because of rumors and a lifetime of hearing horror stories about their fathers, uncles, workmates, and others who have been allegedly “fleeced” or “taken to the cleaners” by their ex-wives. With so many stereotypes and myths out there, men tend to enter the process already assuming the worst and thinking their situation is hopeless. The good news is, with proper representation, a solid plan, and the determination to make legally sound choices, most men come through divorce just fine.

One area where men are most confused is the subject of alimony (“maintenance,” as it is called in Illinois). If you are truly concerned about how much maintenance you may have to pay or you feel that your wife should be paying maintenance, definitely consider talking to a Hinsdale divorce lawyer today. But before you let your wife’s attorney convince you to sign something waiving alimony, consider this.

Maintenance Has Nothing to Do with Gender

It seems most people intuitively already know this, but the myths and stereotypes are just so powerful. But it is true. There is no statute, no regulation, no jury instruction, and not a single court decision in modern times that says men must pay maintenance or that women should not. It is simply not part of the equation. To be sure, there is nothing in the Illinois Marriage and Dissolution of Marriage Act at 750 ILCS 5/457 that mentions which gender should receive or pay maintenance.

Most 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.

If 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.

There 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.