Spousal support is taxable to the recipient and a tax deduction to the payor. If you are getting informal support you usually do not have to pay taxes. Calculate the tax you would be paying under a spousal support order and see if you are getting more without the tax. On the flip side, if you are paying spousal support consider how much you would save if it was deducted.
You should also consider the impact on your spouse if he or she were to receive less. If you are wanting to settle on some other issues, he or she may not be as willing to negotiate.
In order to change your spousal support, whether you're the recipient or payor there must be a material change of circumstance. Quitting your job usually does not qualify, but there are some circumstances where it will. Here are some situations that will help getting spousal support reduced:
1. Losing your job due to no fault of your own.
2. Retirement at the right age will almost always qualify.
3. There are also some changes to the recipient's financial circumstances that may qualify.
If your spouse is already paying for certain expenses or is depositing money into a joint account, you may not want a spousal support order because of the tax consequences.
But, if you need support, you should try to get an agreement for temporary spousal support, while you are waiting for you divorce to finalize.
If you cannot get an agreement, you will have to file a Request for Order to get a temporary spousal support order.
Call an experienced Orange County spousal support attorney for a free 30 minute phone consultation to get help filing your Request for Order.
Song Family Law - Mission Viejo
27201 Puerta Real, Suite 300
Mission Viejo, CA 92691
Song Family Law - Orange
500 N. State College, Suite 1100
Orange, CA 92868