Maintenance and Tax Advantages
Maintenance has its advantages. Most notably, it is tax deductible, another advantage is that it follows a guideline. The guideline serves to provide reasonable financial support to the spouse who needs it while considering the “payor’s” (or the spouse who earns more income) own financial capability.
In New York, spouses have the ability to review the recent amendments to the Maintenance Laws and calculate approximately what their responsibility would be as and for temporary and permanent maintenance. These calculations are just guidelines for the Courts and not necessarily determinative of what a spouse will actually play. There are many factors that go into determining the final numbers. Your knowledge of such changes will help you make informed decisions about the direction of your case and influence the outcome of your consultations with your divorce lawyer.
According to the Formula
The New York State Senate passed Bill A7645, which concerns the duration and amount of maintenance spouses will receive. The bill now provides a formula for determining maintenance, and it also defines the income the courts will use for calculations.
The amendment currently places the payor’s income cap (which used to be at $500,000) at $175,000, which means this is the amount the courts will now use to calculate maintenance. Although it is considerably lower than the previous cap, it will increase on a biennial basis, which took effect at the beginning of 2016. Please again keep in mind this is just a guideline and the Courts may exceed that cap based upon factors they will review and every case is fact specific.
If you are the payor and your income falls below or is equal to the cap, the court will follow a guideline that determines the temporary maintenance. This now includes calculating child support after the court subtracts a percentage of your income, and adds it to your spouse’s income.
Whether you are seeking to understand the process of determining maintenance or wish to modify maintenance, you can rely on the Law Offices of Ian S. Mednick to provide a solution according to your unique situation. Call our law firm today, and let us help you through this process. 631.780.7080