Going through a divorce can be stressful, particularly if one spouse is at a financial disadvantage. In Raleigh, North Carolina, divorcing spouses often wonder who pays alimony in a divorce. An experienced Raleigh family law attorney can help clarify the process for you. That way, you understand when alimony is necessary and which spouse may have to pay it.
What is Alimony Payment?
Alimony is a legal obligation for one spouse to provide financial assistance to the other after a divorce or separation agreement. It helps the spouse with a lower or no income maintain a similar standard of living after the divorce. Who pays alimony in a divorce? Courts evaluate various factors to determine alimony in North Carolina, including:
- Income Disparity – Income discrepancies are crucial in determining alimony payments. The higher-earning spouse supports the lower-earning spouse to help them transition to financial independence and maintain their quality of life through spousal support payments.
- Earning Capacity – The court assesses each spouse’s earning potential. It considers factors such as their level of education, acquired skills, specialized training, and overall employability on the job market.
- Age and Health – The age and health of each spouse are significant factors in divorce proceedings. This is so when one spouse faces health challenges affecting their capacity to maintain employment. Courts assess these factors to ensure an equitable resolution considering both parties’ well-being.
- Assets and Debts – Courts also consider marital assets and debts. They may consider this when one spouse receives a substantially larger share of assets or faces a heavier debt burden during the property settlement.
- Length of Marriage – Courts often consider the length of marriages when determining alimony and child support. Longer marriages often involve greater sacrifices by one spouse. Such sacrifices might include giving up career advancements or quitting their jobs to support the household or raise children.
- Standard of Living – Courts consider the spouses’ lifestyles during the marriage to determine whether each spouse has the income they need to maintain the same lifestyle.
- Financial Needs – Courts consider the alimony recipient’s financial needs, including housing, healthcare, education, and essentials. Also, account for future needs, including child support, retirement savings, and potential medical expenses.
The Impact of Marital Misconduct on Alimony in North Carolina
In this case, who pays alimony in a divorce? Marital misconduct includes actions like infidelity, abuse, or financial irresponsibility that may impact alimony decisions in a North Carolina divorce. For example, a financially dependent spouse who had an affair before separation might be ineligible for alimony.
Who pays alimony in a divorce? Either spouse can request a jury trial on marital misconduct, where the jury decides if misconduct affects alimony eligibility. If both partners engaged in affairs during the marriage, alimony payments are at the discretion of the court or jury.
How Much Tax Do I Pay on Alimony Received?
Recent changes to tax laws have changed how alimony affects tax payments. As of 2019, new regulations no longer allow paying spouses to deduct alimony payments, and recipients do not need to report alimony as taxable income.
- Pre-2019 Arrangements – If your divorce agreement was finalized before 2019 and follows the previous tax rules, alimony payments may still be tax-deductible for the spouse who is making the payment and taxable income for the recipient. The tax laws have yet to eliminate the tax deduction before the new arrangement.
- Post-2019 Arrangements – If your divorce was finalized after 2019, alimony payments no longer qualify for tax deductions by the payer and are not deemed taxable income for the recipient.
- State Tax Implications – Alimony payments in North Carolina do not typically qualify as income and are untaxed at the state level.
Contact Our Raleigh Divorce Attorney Today
If you are considering or going through a divorce in which alimony may be a factor, seeking guidance from a knowledgeable Raleigh divorce attorney can help you better understand potential alimony arrangements. Check out our firm for more personalized advice tailored to your situation, and contact our Raleigh family law attorney at Marshall & Taylor PLLC by calling (919) 833-1040 or through our online contact form for a consultation.