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27 Oct. 20

Alimony Guideline Changes in Alton IL

The New Alimony/Maintenance Guidelines in Alton, IL

A new 2019 Illinois divorce law has changed the way some alimony payments are calculated and awarded as well as how those payments are taxed. Below are just a few highlights of this law, which went into effect on January 1, 2019.

Taxes

Tax Rights

Traditionally, the ex-spouse paying alimony and spousal maintenance was able to deduct that amount from his or her federal tax return, and the spouse receiving the money had to claim those payments (and pay taxes on them) on his or her tax return. The new law reverses that, requiring the person paying alimony to report the income and allowing the person receiving the payments to deduct them from his or her income.

Calculating Payments

Previously, spousal maintenance payments were determined by taking 20 percent of the recipient’s gross income from 30 percent of the payor’s gross income. Under the new law, payments are determined by taking 25 percent of the recipient’s NET income from 33.33 percent of the payor’s NET income.

Higher Threshold for Payments

Under the previous law, the family court judge had the option to award spousal payments when the combined income of both spouses was $250,000 or less. Under the new law, this threshold has been raised to $500,000.

Change in Duration of Payments.

For marriages that lasted fewer than 20 years, the period has been reduced in most cases. For example, under the previous law, a spouse leaving a marriage of ten years would be eligible for spousal payments for six years. Under the new law, he or she would be eligible for payments for just 4.4 years.

New Alimony Guidelines in Alton IL

Eliminating Automatic Permanent Maintenance Agreements.

Under the previous law, a marriage of 20 years or more were eligible for spousal payments lasting the same length of the marriage or permanent maintenance. That last clause has been replaced by an “indefinite period” in the new law.

To learn more about how the new alimony/maintenance guidelines law could affect you and your Alton, IL family, contact The Michael Diaz Law Practice. We’ve been helping southwest Illinois families navigate the sometimes complicated Illinois divorce laws for more than 30 years.