Rarely in life do we get to have it all, and as goes life goes divorce. Divorcees are often tasked with making difficult choices throughout the proceedings. One of the most difficult ultimatums put to separating spouses is alimony or property? Much hinges on the question, as it could drastically impact a dependent spouse’s quality of life. If faced with the Alimony or Property conundrum, here’s what to consider:
Tax implications
Taxes are an important consideration throughout the divorce process, and alimony is no different. In the alimony or property context, taxes are significant because spousal support payments are considered taxable income; certain kinds of property, on the other hand, may not be subject to taxes. For example, if a divorcee has the choice between $5,000 a month for 10 years – taxed at 25 percent – or a property asset (such as stock options) worth $400,000 that’s not taxed, the property asset actually has more value.
Is your ex-spouse dependable?
It’s impossible to receive alimony payments if your ex-spouse doesn’t actually pay them when they’re due. Although it may be uncomfortable, it’s important to consider whether you can depend on your ex-spouse to pay alimony consistently.
Alimony is subject to change
The courts recognize that a person’s financial situation is subject to change. They may encounter hard times through no fault of their own. If a spouse tasked with paying alimony loses their job the judge may adjust their monthly obligations accordingly. For the dependent spouse, it’s important to consider whether your ex-spouse’s financial situation is stable; if it’s not, it may be better to choose property.
Any important legal decision should be made only after consultation with an experienced divorce lawyer. A lawyer can craft a bespoke legal strategy tailored to the client’s unique objectives. Many Oregon lawyers offer a free initial consultation, providing the client a no-cost opportunity to have their case evaluated by a legal professional.