Although divorce is a legal process it affects more than a person's status as single or married. It may wage an emotional war on their energy and happiness and it may significantly change the way that they look at their assets and money. In Colorado marital couples that choose to divorce must divide up their property, figure out how they will share their children, and in some cases determine if either of them should receive financial support from the other after their divorce is finalized.
During a Colorado divorce, a court may order one of the parties to pay the other alimony for the financial maintenance of the recipient. Support of this nature can be a significant expense for the paying party but in some cases, that individual may be able to deduct the payments from their taxable income. Likewise, recipients of alimony generally must report payments as income so that they may pay the taxes on those transfers of money.
This Boulder County family law blog has addressed a number of topics related to the important and often necessary subject of alimony. Alimony can be ordered by courts so that one spouse may maintain their standard of living in the wake of a divorce that may otherwise deprive them of access to their former spouse's earnings.
Not every divorce will result in an award of alimony. After evaluating the petition of the requesting spouse, a Colorado court may determine if the requesting party will be financially disadvantaged after the marriage is over and if they will need support from their ex in order to maintain their livelihood. While many households now thrive on two incomes and marital parties are on relatively more even financial footing than they historically were, alimony payments are a necessary part of many divorce settlements to ensure that each party can survive on their own.
A flood of questions and concerns can dominate a Boulder County resident's mind when they decide to file for divorce. For example, they may wonder how their kids will take the news of their ending marriage or if they will be able to manage on their own. They may have concerns about their soon-to-be ex-spouse causing problems for them during the divorce process.
When two people divorce, they can begin their lives as single individuals in different financial circumstances. Particularly when one of the partners to the ended marriage worked outside of the home and the other elected not to earn an income to support the family at home can the differences in their incoming wealth be exacerbated. In Colorado, a disparity in income between two formerly married people may result in an award of alimony to the lesser-earning person.
In Colorado, people take a lot of pride in becoming self-made men and women. However, rarely does an individual meet his or her path to success completely on their own. Often the support of a loving spouse is necessary to allow that individual to make the personal sacrifices they need in order to achieve their goals.
There are a number of factors that a Colorado court will look at when deciding if a party should be awarded alimony after a divorce. Primarily, the court will assess if the party requesting support can take care of themselves without the other spouse's income and if the spouse who would be responsible for the alimony payments can afford to make them while taking care of themselves as well.
Either through agreement or a court-issued order, a divorcing Longmont resident may find themselves subject to an alimony obligation. Alimony, also known as spousal support, is the payment of financial support from one party to a divorce to the other, after the parties have legally terminated their relationship.
There are tax consequences for both paying alimony and receiving alimony. Payers of alimony usually get to deduct the payments on their tax returns. Recipients of alimony, on the other hand, generally must include the payments in their total gross income. As with nearly all tax matters, alimony payers and recipients will want to keep written records to show to tax authorities if the authorities start asking questions. This blog post will go into a bit of detail as to what documents should be retained by alimony recipients and payers in Boulder County.