If you’re wondering how a remarriage after divorce can affect spousal support, you’re wise to think twice before making a commitment.
The remarriage of the payer has no effect on spousal support orders, however most divorce settlements do terminate spousal support after remarriage of the recipient. This is not a legal requirement just an assumption made in most cases and the family law code of many states. Some states even see co-habitation with a member of the opposite sex as grounds for modification of spousal support.
Get the facts.
Make sure you understand the financial ramifications of your new romantic interest before you dive into a new marriage. It is not abnormal for recipients of spousal support to postpone remarriage in order to maintain their spousal support payments. If you are still negotiating your divorce settlement but have designs on getting remarried soon here are some thoughts.
How Cross Roads Divorce Advisors can help.
Circumstances of the family financial picture or the health of the recipient party may support continuing spousal support after remarriage of the recipient. Like any negotiation each possible outcome comes with risks, rewards, costs and benefits. Cross Roads Divorce Advisors can help you understand each angle and see if your circumstances may warrant continuing spousal support after remarriage.
Here are some examples of settlements that could fall into this category:
1.The recipient party is permanently disabled and unable to earn a living for themselves.
In this case the recipient’s remarriage may have no effect on their financial circumstances due to their need for constant medical care. It may also be the payer simply wants to be sure their former spouse can live in comfort regardless of their circumstances and wishes to provide the minimum necessary to support medical expenses even after the recipient’s remarriage.
2. A non-modifiable order has been negotiated based upon other financial factors in the case.
Non-modifiable spousal support orders will include either a specified duration or dollar amount for the support payments regardless of other circumstances. For example, if you negotiate a non-modifiable support duration of 10 years and get remarried in year 5 the spousal support would continue after the recipient’s marriage.
3. Some parties negotiate spousal support by agreeing to a total amount to be paid over the life of the order then work backward to determine the amount and duration.
In other words, $1,000,000 over ten years which results in $8,333 per month for the life of the payment. Usually these types of settlements assume the continuance of spousal support after remarriage of the recipient in order to complete the full payment of the agreed upon $1,000,000.
If you are the payer, the IRS makes one important distinction with regards to the termination of spousal support. Spousal support, or alimony in their language, must terminate upon the death of the recipient for it to be tax deductible to the payer. They do not, to our knowledge, consider remarriage of the recipient to jeopardize the deductibility of the spousal support payments.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
Lou Falvo is a Certified Divorce Financial Analyst® and CIMA® (Certified Investment Management Analyst) who assists clients by evaluating the tax and financial aspects of divorce. Lou is dedicated to reducing the burden of each client by thoroughly examining the financial elements of the client’s divorce, with a keen focus on what is in his or her best interests. Contact Lou to find out how he can assist you with your divorce proceedings at lfalvo@crossroadsdivorce.com or (585) 542-2382.