Divorce is never simple, but it can be more challenging, especially if your ex-partner is adamant about avoiding their continued financial responsibilities. If a dependent spouse can demonstrate a need for financial support and the other spouse can provide it, the judge may grant alimony or palimony, also referred to as spousal support.

In most states, your ex can only reduce their spousal support payments if they demonstrate that your financial situation or theirs has changed sufficiently. This post will review the most common legal ploys your ex might use to reduce or stop paying alimony and how to reveal and refute them in court.

You are cohabiting

If you remarry or move in with a new partner in a “marriage-like” relationship, the court may stop paying spousal support. To terminate your spousal support, your ex may attempt to prove that you are cohabitating if you have a stable partner and live apart but occasionally visit each other’s house.

Your ex must, however, provide evidence that you are living together “continuously.” You can refute this by demonstrating that you live apart and have different expenses and dwellings. Thankfully, knowledgeable family lawyers might greatly assist in such a scenario.

Temporary reduction in income

Reduced spousal support payments may be justified if your ex-spouse’s income declines and substantially changes their financial situation. Nevertheless, the payment ought to rise after their income stabilizes.

Your lawyer may guarantee that spousal support payments will resume as soon as your ex-spouse’s income returns to normal, regardless of whether you and your ex obtain a court order to lower them or agree to it on your own temporarily.

Your ex is quitting their job.

One of the most common ways an ex-spouse would attempt to adjust spousal support is through a change in financial circumstances. To reduce payments, the adjustment must be unexpected. For instance, receiving less spousal support may be possible if you are laid off or fired.

However, your spouse’s resignation shouldn’t be a “surprise” shift. Your ex cannot resign from their position, reduce their spousal support, and then go back to work. You can effectively contest any decrease in support payments by bringing this up with the court.

How do you negotiate for alimony?

If spousal support is being discussed in your divorce, you might be asking how to ensure that you achieve the best possible outcome, regardless of whether you are the spouse who will pay alimony or the one who will receive payments, right?

To help you out, here are ways for negotiating a fair alimony settlement if you and your soon-to-be ex-spouse are trying to resolve your divorce amicably (as opposed to going to court).

Consider your marital assets.

The most significant marital asset that needs to be divided and distributed in a divorce for many couples is the family home. When discussing spousal support, the house can be a valuable negotiation tool for alimony amounts, mainly when the equity in the home is divided between the spouses about 50/50.

One negotiating tactic if you are the higher-earning spouse who will be paying alimony is to offer the other spouse your percentage of the house in exchange for a reduced alimony amount or lieu of any alimony payments.

If you are the spouse who will get support, do you want to be “bought out” by your husband and stay in the family home, or is it more practical to sell the house and split the proceeds? It may appear to be a windfall when your ex-spouse offers you their portion of home equity, but remember that it is only equity, not liquid cash.

If your home takes a lot of upkeep or needs to be repaired, consider these expenditures before making any decisions. A monthly maintenance allowance may be more financially feasible, depending on your situation.

Pay attention to your taxes.

Alimony payments are often taxable for the receiving spouse, who must declare spousal support payments as income and deductible for the paying spouse at tax time.

If you are the paying spouse, you should note that the IRS may examine alimony payments to ensure they are used for spousal maintenance.

This is particularly true in the first few years after a divorce when some people try to deduct non-alimony divorce expenses under the pretense of spousal support.

This is a key reason to avoid linking the termination of spousal support to anything about your children when negotiating your spousal support arrangement. Avoid, for instance, settlement clauses stating that alimony will cease when your children graduate from college or move out.

The IRS may treat the payments as child support rather than spousal support when the settlement wording looks like this since child support is not tax deductible.

During talks, if you are the supported spouse, spend some time modeling your taxes to understand how support payments would impact your tax bracket and the amount of taxes owed.

The tax owed on alimony “income” may be offset by other elements of your divorce, such as property taxes or home mortgage payments.

Depending on your tax rate, you might choose to replace a portion of your alimony with non-taxable options, such as the paying spouse helping out around the house.

When in doubt, schedule a meeting with a divorce financial planner who will guide you through various tax situations.

To be safe, use this information to assist you in selecting the best alternative for an alimony settlement.

Parting shot

These are some tricks you can use to negotiate for alimony and ensure you get what you deserve. If you are getting paid, you should be ultra-cautious about how you go about it and always ensure that you are ahead of your ex to ensure they never stop making the payments.

For an easier time, work closely with experienced spousal support lawyers Fairfax who will hold your hand and walk you through the process.