Coronavirus Update - Helpful Information for Our Clients

Articles Posted in Alimony

At Bookspan Family Law, LLC we meet many  of you at a vulnerable time in your lives.  Our goal is to help you through life transitions and ease your way to a better future.  Foremost in our minds now is the health and well-being of  you —our clients,  our friends and colleagues.  I am continuously reviewing and assessing the recommendations and requirements of applicable state, local and federal authorities, as well as the World Health Organization and the CDC, to implement necessary precautions and protective steps. As we face the coronavirus global pandemic together,  I want to assure you that we are continuing to work for you.

A note about financial obligations such as child and spousal support and alimony…

If you have lost your job, and or been temporarily laid off, it may affect your support payment (obligation and or receipt).    In Pennsylvania,  parties who either pay or receive support have a statutory obligation to report to Domestic Relations  a change in financial circumstances   As we have not faced  before anything like coronavirus and the interruptions in work and financial security it may bring, we may be in uncharted waters.  However, if you are laid off for a significant period of time, or lose you job, this is a change in circumstance that should be reported.  Alimony payments also may be affected.  Depending upon how alimony was provided for in your property settlement  agreement,  it could be impacted by a recent  financial change.    Please let us know if this is the case, and we will evaluate any next steps with you. For further discussion on financial security and cCvid-19, and a financial webinar,  see more information below.

What is Alimony?

Alimony is a system of ongoing payments made by one spouse to another after the divorce is complete.    It is a remedial remedy,  the purpose of which  is not to reward one party and to punish the other, but rather to ensure that the reasonable needs of the person who is unable to support himself or herself through appropriate employment, are met.  In a  case called Pullett v. Pullett, the  Pennsylvania Superior Court said that  “alimony is based upon the reasonable needs in accordance with the lifestyle and standard of living established by the parties during the marriage, as well as the payor’s ability to pay.”

What is Alimony Pendent Lite and how is it different from Alimony?

The Republican Tax Bill  brings sweeping changes to the nation’s tax code.  As the country adjusts to the revisions and comes to understand the implications, we take some time to highlight the immediate impact this law will have on  families –both intact and those who are facing divorce.     Follow this blog for more details later.

Revisions in the tax code will affect:

           EDUCATION:   529 accounts are expanded to include private school and home schooling.

Currently families can save for children’s college education with the use of tax protected 529 accounts.  In a 529 account your money grows free of any capital gains taxes and  currently it can be withdrawn without any penalty to pay for higher education expenses.   Under the new bill,  the use for money in 529 accounts is expanded.  You  now will be able to withdraw up to $10,000.00 per child, per year,  to pay for private school or for educational expenses that are used for home schooling.   Money that is in a 529 account also may be rolled over to ABLE accounts, which are used for people with disabilities.

            ALIMONY: Alimony is no longer deductible for the payor spouse and no longer taxed to the recipient spouse.  

This  change in  the tax provision regarding alimony does not go into effect until 2019; however, parties in the midst of divorce must be aware of it now as it may have a significant effect on negotiations in equitable distribution agreements.   Understanding the effect of this dramatic change in the tax implications of alimony is important.   If you currently are receiving or paying alimony your agreement may be modified with certain specific language to comply with the new tax rule.  Your attorney should have access to the modification language. Continue Reading

My spouse cheated on me “I Want a Divorce”

597241_troubled.jpgIf you feel emotionally injured because a spouse is unfaithful, I want a divorce may be the first response. If the adultery is longstanding, and the love and trust are gone from the marriage and cannot be repaired then divorce may be your best option. However, I counsel my clients first to be sure their marriage is irreparably broken before considering divorce. If you want a divorce to ‘get back” at your spouse and take him/her for all they are worth, because he/she cheated, then learn a bit about Pennsylvania Divorce Law.

While, under certain circumstances, adultery still may be a basis for a “Fault ” divorce in Pennsylvania, it may not prove to be the answer that you seek. The process may be complicated, protracted and have unintended effects on children. Pennsylvania also is a No Fault state, which means that if both parties consent to a divorce, or if the marriage is broken beyond repair and the parties have lived separately for a minimum of two years, so long as conditions are met, the parties may get a divorce, even if one party objects.