When evaluating the different options presented to them during a divorce negotiation, smart spouses in Massachusetts know that they need to also look down the road at the tax implications of their decisions. The house and the retirement account might look to have the same value on paper but the long-term costs associated with receiving each of these assets may be very different. This is just one example of how taxation may impact the outcome of a divorce settlement.
If you and your Massachusetts spouse are in the process of divorcing, you may have questions or concerns about whether you will receive, or have to pay, alimony following your split. While there is no “one size fits all” answer when it comes to alimony, there are specific areas you can expect the court to consider when determining whether to award alimony to you or your soon-to-be former partner. At Kajko, Weisman & Colasanti, LLP, we have a firm understanding of the areas Massachusetts examines when making alimony decisions, and we have helped many divorcing parties navigate the sometimes-complicated waters associated with divorce and separation.
If you are someone who has recently undergone a divorce in Massachusetts and are required to pay alimony under a divorce settlement, one of the important questions you may have is whether you can deduct your alimony payments on your taxes. According to Findlaw, the answer is yes. Alimony can be deducted on the payer’s taxes because the other spouse receives the money as income. However, the payments you deduct on your tax form must actually qualify as alimony, as not all payments involved in a divorce actually can be counted as alimony or can be tax deducted.
Under the new Massachusetts alimony reform laws, your spousal support agreement is likely to be written in such a way that regular payments stop after the supporting spouse retires. There are, however, certain exceptions and special cases.
Massachusetts lawmakers put alimony reform laws into effect several years ago, changing the landscape of the way the state courts handled spousal support. Some of the language of the reform act is different than that of comparable laws.
The state of Massachusetts takes child support collection seriously. If you owe back child support, you should expect to see it taken out of your tax return. The state has the right to petition the Bureau of Fiscal Service, which issues the refunds, to request a deduction based on your owed back child support, according to the IRS.
It has long been said that fathers get treated badly in family courts in Massachusetts. There are many people who believe that dads do not get the same level of respect for their involvement in their children's lives. It is even thought that courts automatically award custody to mothers unless the fathers can prove they are unfit. These are outdated ideas and not likely what is actually happening in family court.
Often, when people think about or discuss divorce, negativity is associated with their thoughts and comments. While divorce can certainly be difficult, especially for those who are unable to secure an outcome in their favor, there may be benefits associated with the divorce process for certain people as well. For example, someone in an abusive relationship might be able to find peace and safety, while someone who simply was not happy in the marriage might feel a sense of freedom.
Various concerns may arise after ending a marriage, whether they involve childcare responsibilities or marital property. Having said that, those which are financial in nature can be especially difficult, from spousal support responsibilities to child support. Furthermore, some people may fall victim to identity theft at the hands of their former spouse, who may have access to accounts or key details about a person’s identity. If you are concerned about your former spouse stealing your identity, whether you have already divorced or are in the early phases of the process, it is vital to protect yourself.
Family law cases can be complex for an assortment of reasons, but they can be even more complicated for certain people. For example, those who are in the military or have a spouse who is serving may face additional challenges as they try to navigate through the divorce process. Our law firm is sensitive to these difficulties and we understand the stress you may be trying to work through if you are in this position yourself.