Alimony

Massachusetts SJC Changes Alimony and Child Support Calculations

The Supreme Judicial Court’s recent decision in the case of Cavanaugh v. Cavanaugh has had a major impact on how alimony and child support are calculated in Massachusetts family court cases. The court’s decision, which was issued in June 2022, has revised the way in which income is considered when determining support payments, and has introduced a new approach to calculating alimony and child support in cases where both elements of support are involved. One of the key changes brought about by the Cavanaugh decision is the inclusion of employer contributions to retirement as income when determining support payments. This decision has significant implications for those who are going through a divorce, as it will impact the amount of support that is paid. Those who are seeking support payments, or who are going through a divorce, should understand the implications of this decision and be prepared to consider the impact of employer contributions on their support payments. Calculating Alimony and Child Support Another important aspect of the Cavanaugh decision is the introduction of a new approach to calculating alimony and child support in cases where both elements of support are involved. Previously, child support was calculated first, which often made an alimony calculation unnecessary. However, under the Cavanaugh decision, alimony should be calculated first. This new approach involves adding the alimony payment to the payee’s income and subtracting it from the payor’s income, and then using these new incomes to run the Child Support Guidelines. In September 2022, the SJC

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The Types of Alimony and The Mistakes to Avoid During Alimony Negotiations

Not all divorce cases result in court-ordered spousal support, also known as alimony. If you believe alimony will come up during your divorce, there are a number of things to bear in mind. Individuals who are divorcing or are divorced can request and receive spousal support payments. Alimony is paid by the spouse with higher means to supplement a spouse who needs support. 4 Types of Alimony There are 4 different types of alimony that the Court can award: General term alimony payments depend partly on the length of the marriage. Support is paid regularly to a financially dependent ex-spouse. Rehabilitative alimony is provided for a predicted time to an ex-spouse who’s expected to be able to support themselves. Reimbursement alimony support can be paid to an ex-spouse who helped cover expenses enabling the paying spouse to complete an education or job training. Payments can be made regularly or one time, but only applied to marriages lasting no more than 5 years. Transitional alimony may be paid regularly or one time to help the spouse receiving the alimony to settle into a new lifestyle or location as a result of the divorce. This type of alimony only applies to marriages lasting no more than 5 years. Whether contemplating or filing for divorce, both parties should be familiar with common pitfalls to avoid during alimony negotiations. Mistake #1 Hiding Money It’s a mistake to spend a lot of money prior to going to court in an attempt to pay less in

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Mistakes to Avoid During Alimony Negotiations

As a Massachusetts resident going through a divorce, you’re not alone. No matter your reason for divorce, one of the most contentious issues that arise in any divorce is the subject of alimony. Alimony payments—also known in some states as “spousal support” or “maintenance” is the legal obligation that a supporting spouse pay to the supported spouse. Massachusetts courts generally award alimony to the lower-earning spouse so that spouse can maintain a reasonable standard of living during and after divorce. In the commonwealth of Massachusetts, several types of alimony can be awarded. They are called rehabilitative, reimbursement, transitional, and general alimony. When a spouse is in need of additional education or job training to become financially independent, rehabilitative alimony can be awarded for up to five years. Reimbursement alimony may be ordered as compensation to a spouse who financially supported the family while completing an education or job training during the marriage. For short-term marriages, those lasting less than five years, the court may award transitional alimony to help the recipient spouse adjust to a new lifestyle or location. General alimony may be ordered by the court, depending on the length of your marriage. More times than not, one spouse will have to pay the other a set amount of money, at least temporarily. Both parties should be aware of the following mistakes. Mistake #1 Many people are under the false assumption that if they spend a lot of money before going to court, they will have to pay less.

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Wait–what do you mean I can’t deduct alimony on my federal taxes?

Alimony is a series of monetary payments to an ex-spouse that may be mandated as part of a divorce decree. Paying alimony can be an expensive and painful process—and it is about to get much more painful, thanks to changes to the federal tax code. At present, those paying alimony may deduct the payments on their federal taxes, while recipients must report them as income. However, the Tax Cuts and Jobs Act (TCJA) reverses this. Beginning in 2019, alimony payments may not be deducted from the paying party’s federal income taxes. However, alimony payment recipients will no longer have to report them as taxable income. If your divorce has been finalized, or will be finalized before December 31, 2018, you need fear not. The TCJA only applies to divorces finalized beginning on January 1, 2019, or to divorce agreements renegotiated on that date or later. If you are currently considering, or undergoing, divorce, think of the change to tax law as fresh impetus to bring the process to completion. You need the counsel of an experienced tax lawyer to make sure that your alimony agreement is reached before the cut-off, and that the payments agree with the complex requirements of current tax law to qualify for deductions.

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Using Marital Assets to Pay for your Divorce

Can I use money from my joint account to pay for my Divorce? Can I get my spouse to pay for my divorce? The financial part of divorce can be overwhelming to many clients. Many clients did not handle the finances in their marriage, did not work during their marriage, or are generally unaware of what they can and can’t do with joint funds during divorce proceedings. In Massachusetts, when a party files for divorce an automatic financial restraining order is used with the summons that is served on the other party. The automatic restraining order restricts either party from selling, transferring, encumbering, assigning, removing or in any way disposing of any property, real or personal, belonging to or acquired by, either party. However, there are few notable exceptions to this rule, one being that either party can use funds for reasonable attorney’s fees and costs in connection with the action. This means that any joint funds could be used within reason to pay for your divorce. That being said, we often suggest that if a client knows they are going to file for divorce, that they set aside some money into a personal account for fees and costs prior to filing for divorce. This method prevents a potentially contentious argument about using money directly for your joint accounts. Additionally, clients often ask if they can have their spouse pay for the divorce. If there is a large income disparity, the moving party can motion the court pursuant to M.G.L.C

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Get an attorney’s help to prove your ex-spouse is cohabitating

In Massachusetts, alimony can be suspended or terminated based on the fact that an ex-spouse has been cohabitating with someone else in a common household for three months or longer. But what if your ex won’t cop to the cohabitation? How do you tell if cohabitation is really happening or the whole thing is just your suspicions playing on coincidences? There are some usual tell-tale signs: — Your ex-spouse’s new partner is spending all of his or her nights with your ex. — He or she is parking down the street, around the corner, or trying to hide the car in the garage. — The kids have been told not to mention their new “Uncle” or “Aunt” to you. Most of the actual evidence that you can take into a courtroom isn’t easily obtained without the help of an attorney and, quite possibly, a private investigator. If you’re only paying a modicum of support, and the payments are due for only another year or so, you’ll have to ask yourself if the cost of investigation and litigation is worth the result. However, if you’re paying substantial alimony and it’s due to continue for a long period of time, then you should absolutely seek the help of an attorney to get the proof that you need to obtain a modification. What sort of evidence can an attorney get that can help your modification request? Cell phone records, for example, can often be obtained with the help of an attorney. Even if

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Supreme Judicial Court of Massachusetts Provides Framework & Guidance for Applying Presumptive Alimony Durational Limits and Deviation Standards.

The Alimony Reform Act of 2011 establishes presumptive time limitation schedules for the payment of alimony based upon the time period in which the parties were married for marriages up to twenty years. The presumptive durational limits in the Alimony Reform Act apply retroactively to alimony awards that pre-date the Act. Divorced spouses who pay alimony may now file a complaint for modification with the appropriate probate and family court, seeking to terminate general term alimony once the durational limits have been met. Given the presumptive time limits on general term alimony, existing alimony orders which exceed the time limitations set forth in the statute must be terminated without a showing of additional material change in circumstances by the moving party, unless the judge finds that a deviation is warranted in the interest of justice. Once the durational limits have been met, the recipient spouse bears the burden of proving by a preponderance of the evidence that a deviation beyond the presumptive termination date set by Alimony Reform Act is required in the interests of justice. In the recent case of George v. George, 476 Mass 65 (2016), the Supreme Judicial Court of Massachusetts took the opportunity to set forth guidelines as to how a probate court judge should apply the interest of justice standard set out in the Alimony Reform Act. The court opined that in order to deviate from the presumptive limits, the judge hearing the case must find that the deviation is necessary by applying the factors

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How long can someone receive alimony under state law?

The days of lifetime alimony are generally a thing of the past. Women – who have commonly been the recipients of spousal support – are now more likely to be just as well- if not better-educated, than their husbands. They’re also likely to have spent a number of years in the workplace, even if they took some time off to have and rear children. Therefore, when an alimony agreement can’t be reached between divorcing spouses and a Massachusetts court has to step in and make the decision, the length of alimony payments generally is based on how long the marriage lasted. State law, however, provides some guidelines: — For marriages of 20 years or more, a judge can order alimony for whatever period he or she believes is fair. — For marriages that lasted up to 20 years, alimony can’t be mandated for more than 80 percent of the total months of the marriage. For example, if a couple was married for 18 years, alimony cannot be ordered for more than about 14 years. — For marriages that lasted up to a decade, the maximum length of alimony payments is 60 percent. — For marriages that lasted no more than five years, the maximum length of alimony payments is half of the duration of the marriage. Judges can increase the duration of alimony beyond these limits under a number of circumstances, such as if a person has a “clear and convincing” reason under the law for an extension. This can

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