Divorce isn't just an emotional affair; it is a financial one too. Alimony, whether you are the paying spouse or the receiving spouse, is a big part of post-divorce financial planning for many Kentuckians.
What types of factors go into an alimony award? In general, how long the marriage lasted, whether one spouse had been out of the workforce, and any assets received through property division may be some factors the court considers when it comes to determining an appropriate amount of alimony.
It used to be the case that an award of alimony would often be permanent. However, the definition of 'permanent' was subject to a variety of factors. For example, the paying spouse could retire or could develop a long term illness or injury that prevented him or her from working. In addition, an award of alimony may end if the receiving spouse enters into a new marriage. These days, alimony awards are often considered to be rehabilitative, providing the receiving spouse with the financial resources he or she needs to eventually become self-supporting. Therefore, when budgeting post-divorce it is important to consider that alimony payments may not last forever.
Moreover, after one's divorce is completed and an award of alimony is made, it is important to keep one's tax situation in mind. In general, alimony received is taxable income while alimony paid is tax-deductible. This can affect an individual's monthly budget.
Receiving or paying alimony is an important aspect of financial planning after a divorce. If an individual in Kentucky is unsure about the legal aspects of establishing or modifying an alimony award, he or she may want to consider seek legal advice. With the right help, individuals can understand Kentucky's alimony laws so that they can make informed choices.