When a couple divorces, the party required to pay alimony and/or child support typically agrees to take out a specific amount of life insurance to secure his or her support obligations. Generally, the insurance policy names the former spouse or children as the beneficiaries. While a spousal support award may be modified in certain circumstances, it does not necessarily follow that the party’s life insurance obligations also will be reduced as evidenced by a recent New Jersey decision.
Many couples made it a priority to settle their divorce cases prior to December 31, 2018 to protect the paying spouse’s ability to deduct alimony which changed effective January 1, 2019 as a result of the Tax Cuts and Jobs Act of 2017 (hereafter the “Act”). While this was certainly the most widely known change […]
When divorcing, it is common practice for parties to secure their alimony and/or child support obligations by agreeing to carry a certain amount of life insurance. Problems can occur, however, when one spouse does not maintain the life insurance policy and does not disclose that he/she has allowed the life insurance policy to lapse.
Under New Jersey law, one of the circumstances which can suspend or terminate the obligation to pay alimony is if your former spouse cohabits with another person. However, if your ex-spouse is trying to hide his/her relationship, you need to be careful in how you react. You should take several steps to help you determine […]
Alimony is a sensitive and stressful issue with both sides often disputing what may be owed under the law. For spouses who may have limited education or job skills, or who left the workforce to raise children, it can be particularly difficult. They don’t want to be penalized because they made less money during the […]
Effective January 1, 2019, new federal tax laws go into effect which significantly impact alimony. Under long-standing tax law, alimony has been tax deductible for the person paying it and taxable income for the person receiving it.