When a married couple separates or divorces, one spouse may have to pay spousal support, or alimony, to the other spouse.
Alimony is largely based on the need of the recipient spouse, and the ability of the payor spouse to contribute financially to those needs. However, the court must consider other factors as well such as the length of the marriage, the income of each party, and the contribution of each party to the marriage, in determining the amount of alimony, if any, to be paid.
On March 1, 2012, Massachusetts enacted a new alimony law, which gives some further definition to the amount and length of time alimony is payable, and also addresses other issues such as the relationship of child support to alimony, and the effect of cohabitation on alimony.
In a case where alimony is an issue, the use of a financial professional who can work with the attorney and the client can be an invaluable resource. A financial professional can help to determine the tax consequences of alimony in order to maximize the tax benefits and minimize the tax consequences, or help calculate the value of an alimony buyout.
Contact us for more information or to schedule a consultation.