North Carolina Divorce Lawyers Blog

Articles Posted in Alimony

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 Horner v. Horner, No. COA19-632 (unpublished)

 

An alimony claim in North Carolina requires one spouse to be a dependent spouse and the other spouse to be a supporting spouse. A dependent spouse, as defined by statute, is a spouse who is “actually substantially dependent upon the other spouse for his or her maintenance and support or is substantially in need of maintenance and support from the other spouse” (N.C.G.S. § 50-16.1A). It is important to remember that in North Carolina a claim for alimony must be pending when a Judgment of Absolute Divorce is entered. If an alimony claim is not pending when a Judgment of Absolute Divorce is entered, the claimant is barred from bringing the claim in the future.

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Devine v. Devine, (No. COA19-913) (unpublished)

Here in Greensboro, business owners are not immune to unhappy marriages. Divorces can be long and complicated messes, especially when the fortunes of the family rest upon the fortunes of the business. Child support and alimony are based partly on the income and expenses of the parties going through divorce. In the case below, we discuss how one court, which presumably lacked business experience, incorrectly calculated a party’s income. Continue reading →

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Finn v. Finn, COA 19-520 (Unpublished opinion)

Alimony can be a complex element in divorce. How much is fair and reasonable, how it is categorized for tax purposes, or even whether it is owed at all are matters often left to the discretion of judges. Here in the Piedmont area of North Carolina, we had a case that required some back-and-forth among the judges to get it right.

Facts: This is a previously remanded case from the North Carolina Court of Appeals instructing the trial court to make additional findings for alimony and attorney fees.

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Siegel v. Comm’r, T.C. Memo. 2019 11, 2019 WL 643186 (2019)

(a) Facts: Husband and wife were divorced in New York. The final decree ordered the husband to pay to the wife spousal maintenance of $10,110 per month. The husband failed to pay, and the wife filed enforcement proceedings. The court found the husband in contempt and threatened to imprison him unless he paid $225,000 to the wife.

The husband paid the sum required and then deducted it as alimony on his 2012 tax return. The IRS assessed a deficiency on the basis that the $225,000 was not alimony, and the husband appealed to the Tax Court. Continue reading →

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Barry v. Comm’r, T.C. Memo. 2017-237, 2017 WL 5899406 (2017)

 

(a) Facts: When the parties were divorced, the husband agreed to pay the wife $2,400 per month in alimony.  Twenty-four years later, the husband filed an action against the wife in federal court for breach of contract, arguing that he had overpaid alimony and that the wife was required to return the overpayment.  The action was dismissed quickly as time-barred.

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Logue v. Comm’r, T.C. Memo. 2017‑234, 2017 WL 5713945 (2017)

 

(a) Facts: The parties entered into a premarital agreement.  The agreement provided, among other things, that the wife would receive, upon divorce, a lump sum of $100,000, plus $10,000 for each year the parties were married.

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Davidson v. Comm’r, T.C. Memo. 2018-38, 2018 WL 1611811 (2018)

 

(a) Facts: The parties were divorced by an Arkansas court, and the divorce decree divided the parties’ debt.  Within a few days after the decree was entered the judge sent the parties a letter, which stated:

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by Carolyn Woodruff, attorney, CPA
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As has been widely reported, Congress has repealed I.R.C. §§ 71 and 215, thereby eliminating the federal tax reduction for alimony.  In addition, Congress has repealed former I.R.C. § 61(a)(8), which expressly defined alimony as taxable income. Continue reading →

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Alimony is also known as spousal support and it refers to payments made by one spouse to support the other after separation or divorce. The payments may be lump sum payments or ongoing payments. Generally, post-separation alimony lasts until the divorce is concluded. However, a court may also award alimony after a divorce is finalized. In North Carolina, most spouses that were married 10 years or less don’t get awarded alimony for longer than half the marriage. Recent changes to the tax consequences of alimony under federal tax law will have a major impact in how alimony is negotiated in North Carolina.

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