If you are going through a divorce in Michigan, you may be worried about how you will be financially affected as a result of no longer benefiting from the income of your spouse. Many households rely on one income to meet the family needs, with the other parent fulfilling housekeeping and childcare duties.
There is no doubt that the process of divorce is difficult for many different reasons. There are many social challenges that are difficult to face. For example, divorcing spouses need to break the news of the divorce to their children and other loved ones. But there are also financial challenges to resolve. One issue that can cause the most anger and resentment in the state of Michigan is the question of spousal support.
When President Donald Trump signed the Tax Cuts and Jobs Act into law a few months ago, it made it where come Jan. 1, 2019, alimony will no longer be able to be taken as a deduction on a paying spouse's taxes. It also made it where the recipient wouldn't have to pay taxes on those funds anymore either. What many haven't heard about though is how the new law allows paying spouses to continue taking a tax break.
The employment of spousal support, also referred to as alimony, occurs in cases where it’s necessary to even the economic playing field while the couple adjusts to life apart. If a couple cannot agree to terms of spousal support, determination about eligibility and amount are at the discretion of the Michigan court system. The amount of spousal support allowed is based on a wide variety of factors.