When you get divorced, one of the most important things you need to do is untangle your financial life from your spouse’s. Depending on how long you were together, your lives may be so intertwined that disconnecting them can seem impossible at times. If your divorce was uncontested, you may have already worked out a plan for alimony and child support, but if it was contested, the court may be the one deciding that for you. An Illinois divorce lawyer can help.
What Is the Difference Between Alimony and Child Support?
The primary difference between alimony and child support is who is being supported. Both are forms of financial support intended to assist the spouse who earns less income than the other. Alimony, also called spousal support or spousal maintenance in Illinois, is financial support intended primarily to assist the lesser-earning spouse. Alimony is entirely for the benefit of the spouse, and not every divorce will result in alimony payments.
If both spouses have well-paying jobs that are not going to be impacted by the divorce, that means both spouses are reasonably expected to take care of themselves after the divorce is finalized. Thus, neither will require alimony. Whether or not you are required to pay alimony or are allowed to receive alimony will depend entirely on the details of your divorce and whether the court deems it necessary.
Child support is another matter entirely. Child support is paid from the non-custodial parent to the custodial parent in cases where it is deemed necessary by the court. Child support is intended to help take care of the child’s needs, including food, clothes, medical care, education, housing, and other necessities. Like alimony, not every divorce will result in child support payments. If the non-custodial parent’s income is too low, they may not have to pay.
IRS Rules for Alimony
Depending on when your divorce is finalized, your alimony may be considered taxable income by the IRS. Child support payments are not taxed, as it is not considered taxable income by the one receiving it from the paying parent. Child support is also not tax-deductible from the parent required to pay it. In order to qualify their alimony, the ex-spouse must meet the following criteria:
- Payments must be made in cash, by check, or by money order.
- The payments must be owed from a divorce decree or a separation agreement.
- You cannot file a joint tax return.
- The divorce agreement does not specify that the payments are not alimony payments.
- Both spouses cannot live in the same household at the time payments are made.
- If the spouse being paid passes away, there is no liability to continue the payments.
- The payments are not treated as child support.
How Alimony Payments Are Determined
When the court decides that the lesser-earning spouse deserves alimony payments from the other, there are many different factors they have to consider before making such a declaration. The court will take into account each spouse’s income, employment situation, individual living expenses, the way that assets were divided in the divorce settlement, the total length of the marriage, and each spouse’s age at the time of filing.
FAQs
Q: Why Isn’t Child Support Tax Deductible?
A: Child support payments are intended to help make sure your child is given their basic needs, including food, clothing, shelter, and medical care. It is seen as a necessity for your child, not as a court-ordered bonus. It is not considered taxable income for the parent receiving child support, and it is not considered tax deductible for the parent paying child support. Essentially, it is seen as paying for your child’s needs even from afar.
Q: How Is Child Support Calculated in Illinois?
A: In the state of Illinois, child support is calculated using some essential steps. First, each parent’s net income is calculated and combined. Each parent’s percentage of the total net income is determined. The basic child support obligation is determined using an income shares model. Then, you multiply the basic child support obligation by each parent’s percentage. That number is the amount in child support that the non-custodial parent could be ordered to pay.
Q: How Long Does Alimony Last in Illinois?
A: Generally, the court declares how long alimony, or spousal support, is expected to last after a divorce. The duration of alimony depends largely on the length of the marriage. If the marriage lasted 20 years or more, there is a strong chance the alimony payments will last indefinitely. Unless there is a written agreement between spouses that shows how long alimony is expected to last, alimony tends to last until one of the spouses dies or the receiving spouse remarries.
Q: What Happens If a Spouse Stops Paying Alimony?
A: If a spouse who is ordered to pay alimony suddenly decides to stop paying, the other spouse may be well within their legal rights to take court-ordered action. They can file for a charge of contempt of court, which could result in jail time, fines, or both. The court can decide to garnish the spouse’s wages, tax returns, or bank accounts until missed payments are made up, plus interest that could be added at the court’s discretion.
Contact an Experienced Divorce Lawyer Today
Determining alimony and child support payments can be difficult to do on your own, especially if you have no idea how much is considered fair or what the basic financial needs of your ex-spouse even are. An experienced divorce lawyer can help you make sure you aren’t taken advantage of with alimony payments or child support. It is important to have someone who has your back during this challenging time.
The legal team at Stange Law Firm understands how difficult a divorce can get, and we are ready to assist you in figuring yours out. We can challenge alimony requests, help you figure out a payment agreement with your spouse, and make sure your interests are protected throughout. Contact us to speak with a team member about your case.
