Spousal support can be critical in helping financially disadvantaged parties adjust to life after divorce. Depending on the type of support that a person receives, it can provide long-term stability or short-term relief. In either case, it can be essential for recipients.
In the recent New Jersey Appellate Division decision of Ortiz v. Ortiz, the Court ruled that qualification for VA disability may justify modification of child support and alimony obligations. In the matter Ortiz v. Ortiz, the party paying support achieved a 40 percent VA disability rating and the Court found this sufficient to open the case up for review and a potential downward modification of child support and spousal support.
During a divorce, alimony, also referred to as spousal support, is the exchange of money between former spouses when, at the end of a fairly long marriage, there is a substantial difference in the parties' actual income or income earning ability. The federal tax code permits the person paying a spousal support to deduct the payment from their federal tax obligation and further requires the recipient to report alimony as income, no different than a paycheck from a job. Section 71 of the Internal Revenue Code (IRC) has certain technical requirements for purposes of deducting and declaring alimony upon tax returns. Among these is the requirement that there be a written document between the parties memorializing the alimony obligation.