Ending a marriage is typically traumatic for any Minnesota couple, and although most spouses may want to make a clean break and proceed with a new life, some connection will remain if there are children or if the court orders spousal support to be paid. The person paying alimony will likely not be keen on spending many years of supporting an ex-spouse, and, similarly, the one receiving it might want to become self-supporting as soon as possible. Both would want to know how long alimony will last.
Previous generations, like the baby boomers and Generation X-ers considered prenuptial agreements something reserved for famous people trying to protect their assets in case of divorce. Many people may have thought it is purely to protect one party against the alimony claims of another. However, the millennials have come to change these ideas.
When Minnesota couples divorce, money matters and post-divorce financial stability typically receive a significant amount of attention. Those who are still contemplating such a step must keep the changed alimony laws in mind. Currently, any alimony paid in cash to an ex-spouse is tax deductible, but that will no longer apply after the end of 2018. Also, the recipient will not have to declare alimony as a taxable income as of Jan. 1, 2019. This new law has led to some financial advisers suggesting the higher-earning spouse should use a lump sum payment of his or her individual retirement account as a bargaining chip for alimony payments.
As so often in life, when a topic is new to someone, the language related to that topic may be daunting and incomprehensible. The same may hold true when it comes to divorce. One aspect of divorce that may confuse and overwhelm someone in the midst of the situation is alimony.