Ending a marriage through divorce will involve multiple types of legal and financial issues. A couple will need to separate multiple different aspects of their lives that have become intertwined while they were married. As they make decisions about how to divide the property they own and the debts they owe, each spouse will want to take steps to make sure they will be able to support themselves and live comfortably once their marriage has ended. However, this can sometimes be difficult for those who rely on a spouse’s income or who do not have significant financial resources. In some cases, a person may be able to receive ongoing financial support from their spouse that will help them meet their needs. By understanding when this form of support (which is known as spousal maintenance, spousal support, or alimony) may be appropriate, spouses can make sure they will be able to address this issue correctly during the divorce process.

When Will Spousal Support Be Awarded?

A person will not automatically receive spousal maintenance following divorce, and this form of support will generally only be appropriate in situations where one spouse earns a significantly higher income than the other. If a spouse has been a stay-at-home parent during the couple’s marriage, or if they only work part-time so they can devote more time to childcare and other household responsibilities, they may ask for spousal support so that they will be able to cover their ongoing financial needs after getting divorced while also working to ensure that they will be able to support themselves in the future.

A couple may agree that spousal maintenance will be paid when they create a divorce settlement. If an agreement cannot be reached, the party seeking support can ask the judge in their case to decide whether spousal support should be awarded. When considering this issue, a judge may look at how much income each spouse currently earns, the income they should be able to earn based on their education and work experience, and their ongoing needs. Other relevant factors that may play a role in these decisions include whether the spouse seeking support has made sacrifices to their income or career in order to focus on family responsibilities and whether a person has made monetary or personal contributions that have helped their spouse increase their income level or pursue career opportunities.

Although there is light at the end of the tunnel with a vaccine for coronavirus being administered now, the economic impact may be felt for some time. Many non-essential businesses such as bars, restaurants, casinos, fitness centers, and salons were closed to stop the spread of COVID-19. As a result, workers across the country, including Illinois, had to file for unemployment for the first time in their lives. The financial impact of this can be especially difficult for a divorced person.

In some cases, an individual may either pay spousal maintenance (alimony) or receive it as determined in the divorce decree. Spousal support refers to the legal obligation to provide financial support to an ex-spouse in a legal separation or divorce. The purpose of this maintenance is to help the ex-spouse eventually become self-supporting. However, if either spouse loses his or her job, it is important to understand how this unemployment can impact the support payments moving forward.

Spousal Maintenance 101

According to Illinois divorce law, spousal maintenance is intended to help the supported spouse maintain a similar financial situation as he or she had during the marriage. It is often awarded to the lesser-earning spouse or one who did not work outside of the home. Before this type of financial support is awarded, the court will review certain factors, including each spouse’s income, if child support will be paid, and whether one spouse needs financial assistance. A judge can order maintenance for a short or indefinite period with a periodic review depending on the details of the marriage and divorce. For example, if a couple was married a long time and one person has medical issues that prevent them from working, the support may be permanent.

If you are considering divorce in Illinois, you probably have many questions. One of these may be about whether or not you will be required to pay alimony, or spousal maintenance. Spousal maintenance is designed to help financially support a lesser-earning spouse after a divorce. While spousal maintenance is awarded less often now than it was in the past, there is still a possibility you will be required to make spousal maintenance payments. Read on to learn about alimony laws in Illinois, as well as how recent federal tax law changes can affect the amount of alimony spouses pay and receive.

Spousal Support Basics

Spousal maintenance, or spousal support, can often be a contentious issue during a divorce. Courts examine many factors when deciding whether or not a spousal maintenance order is appropriate. When making spousal support decisions, Illinois courts typically consider:

• Any existing premarital or prenuptial agreements between the parties;
• The standard of living established during the marriage;
• How long the marriage lasted;
• Each party’s property and income including retirement and disability income;
• The age and health of each party;
• Each party’s present and future earning capacity;
• Contributions each party made to the marriage including contributions made as a homemaker or stay-at-home-parent;
• Contributions that one spouse made to the advancement of the other spouse’s education or career;
• How long it will take the party requesting support to gain suitable education, training, and employment;
• Tax consequences of spousal maintenance options; and
• Other factors that the court believes are fair and pertinent.

How Recent Changes in Tax Law Affect Spousal Support

Previous to the recent passage of the federal Tax Cuts and Jobs Act, spousal maintenance payers were able to claim maintenance payments as a deduction on annual tax returns. The spouse receiving alimony was obligated to report maintenance received as taxable income. Now, spousal maintenance payers do not receive a deduction, and maintenance recipients will no longer report payments as taxable income.

Even though alimony is not awarded as frequently in divorce as it once was, it is still an important (and often contentious) element in some divorce situations. It can ensure a disabled or disadvantaged spouse has at least some financial resources as they attempt to rebuild their life (perhaps by going back to school to start a new career or re-entering their former career field). Alimony can also ensure a family unit is financially stable in the months immediately following a divorce.

Thanks to the passage of the Tax Cuts and Jobs Act, alimony laws in the United States will undergo some monumental changes in 2019. A provision, which has been in place for more than 70 years now, will be completely eliminated, and it is expected to negatively affect many divorcing couples in the year to come. Learn how you can prepare for the upcoming alimony changes, and discover how our seasoned Wheaton family law attorneys can assist with mitigating against the potential issues in your Illinois divorce.

How the Tax Act is Changing Alimony in 2019