Alimony affected taxes in the past. Alimony has been a deduction from income when the payor files his/her income tax return. If the payor earned $100,000 in a year and paid $1,000 a month in alimony, his/her taxable income would be $88,000. The $12,000 per year alimony would be added to the recipient's income and he/she would pay taxes on the alimony received.
We are all familiar with the concept of a "Prenup". That is the agreement that parties enter into before marriage, making a full and complete disclosure of all financial information and making provisions for future alimony and equitable distribution of assets in the event that of a divorce. Many people feel that it is not romantic to ask a future spouse to sign an agreement before marriage about how to divide assets upon a future divorce, but it can clarify how people feel about money and how to divide their assets if the marriage fails. Many people getting into a second marriage feel that it is important to protect their children and allow them to keep their assets acquired before the new marriage.A Postnup is entered into after the parties marry. Every marriage is different and there is no one answer for all situations. One good time to negotiate and create a Postnup is when a child is to be born. It should set out how long either or both parents may be out of the workforce. If the parties agree that one parent (often but not always the Mom) will leave his or her job for an extended period of time, what happens in a divorce? Suppose the parties agree that one person will stay home for a year or longer.
Traditionally, alimony and child support were paid by men to women. Occasionally, clients tell me that the Court's are biased against men - that Courts award women custody, child and spousal support and that a man does not receive the same treatment.