Alimony is not always indicated. The longer the marriage and the larger the gap between the parties’ incomes, the more it is likely.
- Alimony is no longer deductible to the payor and taxable to the recipient.
- Parties have to live apart to pay alimony, but need not be divorced.
- Alimony can take the form of payment of the recipient’s mortgage, for instance, and is only recognized by the IRS if it is based on a written agreement.
- Alimony is figured as a percent of the difference between the Parties’ incomes, typically around 24-26%
- Need is a major consideration.
- Duration of alimony depends on length of marriage.
- Whatever the indicated duration, 'clock' starts upon divorce absolute
- Alimony ends at the end of its durational limit, upon death of either party, marriage of recipient, or final retirement age of payor.