Spousal support, also known as alimony, is the payment of money from one spouse to the other following their divorce. The obligation of the higher-earning spouse to pay spousal support is determined by several factors.
In high-net-worth divorces, spousal support is often a significant concern due to the money involved. If you are going through a high-net-worth divorce, it is important to approach the matter of spousal support or alimony carefully. You can seek guidance from a top-rated NYC spousal support attorney who can assist you throughout the process. A skilled attorney may also be able to help you understand how long alimony lasts or if it is possible for you to receive spousal support.
New York City divorce lawyer Juan Luciano may be able to help with your case. Read on to learn more about the role of alimony in a high-net-worth divorce.
What Role Does Alimony Play in a Divorce?
Alimony is a key component of a high-asset divorce. It can help make sure that each spouse has a decent standard of living even after the separation. In some cases, one spouse may have more assets and income than the other. This can lead to the spouse with a lower net worth being financially handicapped after the divorce.
Alimony is a financial aid that allows the spouse with a lower income to support their needs and to maintain the same lifestyle they enjoyed during the marriage. Alimony can prove useful in situations, especially when the spouse with a lower income has given up their career and education to help care for the family.
You can also use alimony to balance property distributions between spouses. If one spouse has a significant amount of property and assets to split, then alimony may help to balance the situation and allow both to continue their lives on an equitable basis.
Speaking to an experienced divorce lawyer about spousal support matters is very important. They can help you negotiate and ensure that you are getting the financial support you will need after your divorce. Attorney Juan Luciano has years of experience helping clients with spousal support matters. Contact us today to schedule a consultation.
How is Spousal Support Different in High Net Worth Divorces?
In high-net-worth divorces, if a couple has a significant income, the court doesn’t follow the usual formula to decide how much money the lower-earning spouse receives in spousal support.
Instead, the judge has complete discretion to decide the amount, which can cause uncertainty for high-net-worth couples. To protect their finances, most couples try to reach an agreement themselves with the assistance of a spousal support lawyer.
New York recently passed a law that uses the same formula to calculate temporary and final spousal maintenance. For those with income above $184,000, the court can decide on spousal maintenance.
The factors for determining spousal maintenance are similar for both regular and high-net-worth divorces. These factors include:
- The length of the marriage
- The age and health of each spouse
- Their current and future earning potential
- Any training or education costs
- The presence of minor children and who will have custody
- Tax implications
- The standard of living during the marriage
- Any other relevant factors as determined by the court
The standard of living during the marriage can also have a significant impact on high-net-worth divorces.
Is Alimony Taxable in New York?
On a federal level, the tax treatment of alimony changed as of January 1, 2019. Prior to this date, the payor spouse could deduct alimony payments, while the payee spouse was required to include them as income. However, under the new law, alimony is no longer deductible by the payor spouse, nor is it considered income to the payee spouse. Therefore, for federal returns, spousal support is not deductible for the payor spouse and does not need to be declared by the payee spouse.
In contrast, the tax treatment of spousal support in New York state has not changed. It remains deductible for the payor spouse and counted as income for the payee spouse. As such, spousal support payments made in New York state may have different tax implications than those made in other states, due to the variance in state laws and regulations.
It is important for individuals navigating divorce proceedings and spousal support payments to be aware of these tax considerations and to seek the guidance of legal and financial professionals to ensure compliance with applicable laws and regulations.
Is There a Specific Duration of Marriage Required To Receive Spousal Support in New York?
While the right to spousal support begins on your wedding day, the court typically doesn’t grant it if the marriage lasted less than six months. This is because any support granted would likely only last a couple of months.
However, if there’s a significant income disparity between spouses, then it may be worthwhile to pursue spousal support even for shorter marriages. There’s no set minimum duration for spousal support eligibility, but it’s essential to approach the matter pragmatically.
Contact the Experienced New York Spousal Support Attorney Juan Luciano Today
If you are going through a high-net-worth divorce, it is critical to work with a lawyer who has experience handling complex financial matters. As a high-net-worth individual, you need a lawyer who can help you navigate the unique challenges and complexities that arise during these types of divorces. With so much at stake, including your financial future, it is essential to choose a spousal support lawyer who can provide you with the representation you need to protect your interests.
Contact Juan Luciano Divorce Attorney today to schedule a consultation with an NYC spousal support lawyer who can help guide you through this challenging process and ensure that your rights and assets are safeguarded.