The Cost and Benefit of Alimony Payments
Consider the followign: Husband/Dad is in finance and earns about 35k per month. Wife earns about 5k per month. Over their 28 years they have acquired about 5 million in cash, retirement and hard assets and no debt.
It is not disputed that Husband has a periodic alimony obligation of some amount. In working up a solution, I need to know how much my client must earn in order to pay a sum of alimony to his Wife.
Settlyd's Alternative Tax Calculator (ATC), found on the sdiebar just above the link to the Guidelines, can help figure this out.
Under the new IRS rules regarding alimony, while there is no reportable income or deduction from income, there is still a cost to the payor and a benefit to the Payee. See Sean's excellent Video on how this feature works.
When we use the ATC we are using a reasoned approach based upon objective facts. This helps keep the emotions at bay and can lead to a more peaceful resolution.
We hope you find these tips helpful,
Be well and stay safe,
Guy and Sean