On March 12, 2018, the Minnesota Court of Appeals reversed denial of a request to modify spousal maintenance. The decision in Chadwick v. Chadwick is an interesting read; it’s been a while since we’ve reviewed a chain of opinions with such contrast among the lower and higher court.
We’ve all seen the clips on entertainment shows or read the headlines of magazines in the checkout line at the grocery store about spouses of celebrities, sports figures and business leaders receiving multi-million dollar settlements.
Many people receive alimony (also known as spousal maintenance) awards as part of MN divorce decrees, but these awards are less common than they were many years ago, and they may be temporary in nature. While our Minnesota alimony lawyers have helped many clients obtain the full support they need after divorce, we have also learned that individuals often discover numerous experiential benefits from going back to work.
It is important to know how the IRS treats spousal maintenance and child support to ensure that both are considered correctly on your income tax return. Generally speaking, spousal maintenance is tax deductible to the payor, but the payee (recipient) must pay taxes on it. Child support is not tax deductible to the payor, and the payee does not have to pay income tax on it. While it is easy to determine what is characterized as “child support,” it can be a bit more complicated to determine what qualifying “alimony” is. Alimony, in order to be tax …
Spousal maintenance is a factor-based award in Minnesota. In this quick guide, find key information concerning spousal maintenance awards in Minnesota: Need: The party seeking spousal maintenance must establish a need. This is determined by comparing the party’s projected monthly budget against the party’s ongoing income. Ability to Pay: If a party establishes a need for spousal maintenance, the other party’s ability to pay will be examined. This is determined by comparing the party’s projected monthly budget against the party’s ongoing …