Tag Archive for: family law

How alimony payments affect taxes

People who are going through a divorce in Wisconsin might be interested to learn how alimony will affect their taxes. The Internal Revenue Service requires all people who pay or receive alimony to report the payments on their taxes. Recipients of alimony must count the payments as income, and payers of alimony may deduct the payments from their yearly income.

For tax purposes, ex-spouses with an alimony order in their divorce decree must share their Social Security numbers with one another. If an individual fails to provide their ex-spouse with a Social Security number, the IRS may require them to pay a fine of $50. Spouses who are receiving alimony are required to report the full amount of alimony that they are receiving as income on Form 1040.

It is important for divorced people to understand what the IRS considers to be alimony payments. In order to be counted as an income deduction, alimony that is paid must be required by a court order. Voluntary payments and payments that are made to divide marital property are not alimony, according to the IRS. Further, the person who is paying alimony must not share the same household as the recipient, and the payments must be made in the form of cash, checks or money orders.

A person who is going through a divorce and seeking alimony payments might want to speak to a family law attorney. An attorney may be able to represent the lower-earning spouse’s interests at negotiations and court hearings. In some cases, the fact that alimony is deductible can help ameliorate the financial consequences to the payer.

Gay marriage rights upheld nationwide by U.S. Supreme Court

Although a lower court ruling in 2014 recognized same-sex marriages in Wisconsin, the right to marry for same-sex couples declared by the U.S. Supreme Court in its June 2015 decision gives the marriages of Wisconsin same-sex couples legal weight even if they move to another state. This interstate issue was part of the case before the Supreme Court. In Obergefell vs. Hodges, one state had refused to recognize a man as a surviving spouse because he had married his partner in a different state.

Additionally, the Supreme Court considered the question of whether the equal protection and due process guaranteed by the Fourteenth Amendment applied to same-sex marriages. In a 5-4 decision, the justices chose to extend these rights to gay couples. Writing for the majority , Justice Anthony Kennedy acknowledged that marriage had historically been defined as a union of opposite sex partners but conceded that the institution had evolved and changed over the years.

According to an ABC News/Washington Post poll, 61 percent of the people questioned expressed support for gay and lesbian marriage rights. These marriage rights had already existed in various legal definitions in the District of Columbia and 36 states. The other states will now have to recognize same-sex marriages as equal before the law.

Before this decision, gay and lesbian people had sometimes faced challenges to their family law rights. With equal legal protection now legally established, a person could have a clearer legal path toward goals such as marriage, divorce or child adoption. An attorney could advise a person about how to proceed with family law issues such as negotiations to divide property and determine child custody and visitation.

Source: ABC News, “Same-Sex Marriage: These Are The States Affected by SCOTUS Ruling,” June 26, 2015

Alimony can be complicated divorce issue

Wisconsin couples know that when a marriage ends, many times financial obligations do not. These include child support, which usually ends when a child turns 18, and alimony, which might only end with the remarriage or death of an ex-spouse.

Just like child support, alimony, also known as spousal support, usually can’t be avoided in a divorce. The burden of paying alimony usually falls on the spouse with the higher income. Sometimes, alimony ends after a specified time, and sometimes, it ends when the receiving spouse remarries or dies. In some cases, this may depend upon the stipulations of the divorce decree.

The amount of alimony to be paid also depends on other factors. These include each spouse’s gross monthly income and how long the marriage lasted. In shorter marriages, alimony may be limited to the same length of time the marriage lasted; in longer marriages, say over 10 years, it may last indefinitely. Courts also will look at the standard living the couple enjoyed in married life, if the alimony recipient is able to work, and the age and health of the receiving spouse.

Not all ex-spouses want alimony. They may be able to support themselves or may just want to sever all ties with their former spouse. Because spousal support can be a complicated issue, divorcing couples may want to consult with a family law attorney who may be able to help them in negotiating spousal support and helping them to make informed decisions when the issue comes before the court.

Man must pay alimony to immigrant ex despite prenup

Wisconsin couples may be under the assumption that a prenuptial agreement is ironclad, but a federal court decision proves that is not always the case. On June 8, the U.S. Court of Appeals for the 9th Circuit ruled that a wealthy real estate agent must pay alimony to his Turkish ex-wife because he is her immigration sponsor.

The real estate agent, a naturalized U.S. citizen from Turkey, married a Turkish woman in 2009. Per the couple’s marriage contract, he agreed to provide enough financial support to keep her income at least 125 percent above the federal poverty line. However, the couple separated in 2011 and officially divorced in 2012. A prenuptial agreement stipulated that each party forgo alimony if they divorced. The ex-wife moved into an apartment with her adult son and received food stamps from California. Shortly after the divorce was finalized, she sued her ex-husband for the income promised on the I-864 Affidavit of Support they both signed when she came to the U.S.

The real estate agent, who is said to be worth $5 million, argued that he was already financially supporting his ex-wife and the prenuptial agreement foreclosed alimony. He further claimed that food stamps and a Turkish pension kept her above the poverty line. A district court ruled that he had an obligation to support his ex under the terms of I-864, but he did not have to pay her because her son’s support kept her above the poverty line. However, the 9th Circuit ruled that the affidavit of support is a contract and must be upheld regardless of the provisions of the prenuptial agreement.

Divorce cases can be complex, and prenuptial agreements that were entered into with the intent of simplifying them can be overturned for a variety of other reasons. Attorneys will advise their clients who are considering one that the terms should be negotiated and the document signed well in advance of the wedding in order to preclude a future claim of coercion or duress.

Source: Courthouse News Service, “Immigrant Ex Gets Alimony Despite Prenup,” Nick Rummell, June 8, 2016

Wisconsin man surrenders to police after domestic standoff

Police arrested a Waukesha man after a four-hour standoff at his home. Law enforcement went to the home on a domestic violence call. The man’s wife told them her husband had threatened to kill the police if she ever called them. Although the man ultimately surrendered peacefully, court records say he told the officers he would have shot them if he knew they were outside. He allegedly said that he and “two or three cops” would have been dead. The man is now charged with terrorizing his wife and threatening the officers.

Wisconsin has a comprehensive domestic violence law. Under state statute, arrests are mandatory in domestic violence situations even when the victim does not cooperate with the authorities. The mandatory arrest requirement is an important aspect of the law because victims of domestic violence often refuse to press charges due to their fear of further abuse.

It is not easy for a victim of domestic violence to leave an abusive relationship. Many fear what their abusers will do if they leave. Others have been isolated from their friends and family or controlled financially. Some may maintain hope that the abusive partner will change. Advocates for domestic violence victims say those suffering in an abusive relationship should seek help using the many resources that are available to victims of spousal abuse.

If you are the victim of domestic violence, a domestic abuse hotline or shelter is one place to seek support. Another option is to seek the assistance of an experienced family law attorney. The attorney can help you get out of a violent or abusive situation and put you in touch with other professionals who can provide additional support.

Source: 620WTMJ.com, “Court for Waukesha domestic violence standoff suspect,” Melissa McCrady, Dec. 12, 2012

Law enforcement advocate partnership may restart

A law enforcement advocate partnership to aid victims of domestic violence that was based on a successful Milwaukee program may soon restart in another Wisconsin city. Two victim advocates recently presented a proposal to Madison’s Public Safety Review Committee for funding to restart the program, which was piloted for 14 months beginning in 2011 using federal stimulus money. The program involves a partnership between the city’s police department and Domestic Abuse Intervention Services (DAIS), Dane County’s main service provider to victims of domestic assault.

Under the program, when law enforcement officials respond to a domestic assault call, they would be required to provide DAIS with the victim’s name and contact information. DAIS then would be responsible to contact the victim within 48 hours to offer its services. The types of services provided by DAIS to victims of domestic violence include legal representation, support groups, emergency shelter, and child care.

Before the pilot program started, police officers responding to a call would provide the victim with a list of services. They would not make a referral or advocate for any particular service. Victim advocates say this approach resulted in very few victims ever obtaining services. When contact was initiated by DAIS during the pilot program, however, 45 percent of victims went on to receive services.

Advocates hope that by restarting the program, victims of domestic violence will be in a better position to leave their abusive relationships because they will be more likely to get the services they need to do so. Resources like emergency shelters and child care can allow victims to have a safe place to stay and to leave their children. Legal resources can help them obtain restraining orders and other legal protection against their abusers. Support groups can provide needed encouragement and let victims know they are not alone.

Source: The Badger Herald, “City looks to restart service for domestic violence victims,” Sarah Eucalano, March 13, 2013

When are lifetime alimony awards appropriate?

Alimony, or spousal maintenance as it is called in Wisconsin, is one of those concepts of family law that has been around for quite some time. In law in general, and in family law specifically, some of the oldest concepts are the slowest to change. With that in mind, we would like to tell you about a recent alimony case that has made all the way to the Supreme Court of Tennessee.

The Supreme Court of Tennessee is now considering making changes to the state’s alimony award by putting an end to lifetime payments. Some attorneys are supportive of the change stating that lifetime alimony payments discourage individuals to remain married. The case that has reached the Supreme Court involves a couple that had been married for more than 20 years.

The wife was an information technology employee who made more than $70,000 per year. The husband was a controller at a large company, making nearly $140,000 per year. Their two children were grown so there were no child custody issues. The divorce began in 2007 and was appealed after a trial. On appeal, the state Court of Appeals ordered the man to pay his ex-wife a monthly alimony of $1,250.

The ex-wife claimed that, early in their marriage, she had helped put her husband through college and that he would not be earning such a high yearly salary without her previous support. She also claimed that her ex-husband had initiated the breakup, entitling her to alimony.

The husband denies that he caused the divorce and does not agree with the court’s ruling. He has said that he should not have to pay alimony since his ex-wife is educated and employed and will have no difficulty maintaining her previous lifestyle.

This type of alimony has become less common over the past few decades and this couple’s situation particularly seems to be an unlikely candidate for lifetime alimony. Lifetime alimony awards are generally reserved for an older individual who had been married for an extended period of time and had sacrificed a career for the marriage. Nevertheless, trial judges still have discretion in the amount of alimony, if any, they order. Oral argument in the case is scheduled for later this spring.

Source: The Tennessean, “TN Supreme Court considers change in alimony payments,” 3/10/2011

States are changing the way they view alimony

Just as the definition of marriage is changing today, with a growing number of states recognizing civil unions between same sex couples, the traditional view of divorce is changing, too, specifically when it comes to alimony payments.

A growing number of states are enacting new laws that throw away the old notion that alimony payments are a lifetime entitlement following divorce.

The Washington Times recently reported on a new bill in Massachusetts that limits the amount of time that some divorced spouses can receive alimony payments. The bill passed that state’s Senate unanimously.

The new bill says that couples who divorce before hitting their five-year anniversary can expect alimony to last just a few months or years, depending on the length of the marriage, the Washington Times reports. Couples who divorce after a marriage that lasts for decades might expect alimony to last until the former spouse making payments reaches official retirement age.

As the Times reports, Massachusetts is far from alone in taking steps to rework alimony payments. The story cites Texas and Mississippi, both states that award alimony payments only in marriages lasting at least 10 years. In Utah, former spouses only have to make alimony payments for as many years as the marriage itself lasted.

Supporters praise these changes, saying that the concept of alimony was long due for a reworking. Critics worry that some state measures go too far, and could leave former spouses in financially dire situations.

Whatever side of the issue you’re on, one thing is becoming clear: You can expect even more states to change the way alimony works.

Source: The Washington Times, “States no longer wedded to idea of alimony for life,” Cheryl Wetzstein, July 28, 2011

High asset divorce can involve alimony disputes

There are a multitude of issues that divorcing couples in Wisconsin must address in order to come to fair marital property settlements. One of those issues is spousal maintenance, also commonly referred to as alimony.

Spousal maintenance can be awarded to one spouse in order to help that person maintain the lifestyle that he or she had become accustomed to prior to a divorce. Maintenance awards are often granted to stay-at-home spouses who gave up their careers in order to stay home with the children.

Generally speaking, after spending a lifetime out of the workplace, it is difficult to enter back into the workforce, especially in today’s tough economic climate. Alimony is intended to alleviate this burden. However, many couples have a hard time reaching an agreement about this issue. .

A TV anchorman and his ex-wife are currently battling over alimony. In 2010, the couple was granted an order of divorce in which the wife was to receive permanent spousal maintenance of more than $16,000 per month. The court did not consider whether the wife could become self-supporting.

The ex-husband, who makes around $525,000 per year appealed that decision on the grounds that the wife does has a college degree in education and held a job as a special education teacher for five years during the early years of their marriage. He argued that she is capable of working and says she could earn a salary to help support herself.

On the other hand, the ex-wife has not worked full-time in 25 years, since the couple started having children. Although she home-schooled one of her children and has volunteered as a tennis and dance coach, she has only been employed part-time as a fitness instructor, earning around $3,000 each year.

The appeals court in this case agreed with the husband and ruled that the lower court should consider the ability of the wife to eventually become self-supporting and the possibility of prospective earnings.

The case is now being sent back to the lower court to consider these possibilities. Based on those considerations, it is possible that the wife’s alimony award will be limited in time or in amount. Hopefully, taking all factors into account, the court will come to a fair resolution.

Source: The Pioneer Press, “Fox 9 anchor Passolt in alimony dispute,” Emily Gurnon,” Aug. 22, 2011