Jump to Navigation

Tips for using spousal support payments wisely

There are times when a judge determines that alimony is appropriate for a person who is going through a divorce in Michigan. According to MichiganLegalHelp.org, when one spouse is unlikely to get a job that provides adequate support due to a lack of education or experience, temporary spousal support may be awarded. Judges rarely order permanent alimony unless the couple has been married many years.

According to GoBankingRates.com, it may be tempting for spouses receiving alimony payments to view them as a salary. Impractical spending and failure to plan for the end of the support could leave a person in serious trouble. With appropriate planning, though, the payments may provide the step up necessary for becoming financially secure.

Perhaps ideally, using the monthly payments to eliminate debt or finance education could make a difference in the ability to take care of regular living expenses later. Or, it may be necessary to use the monthly payments or lump sum received to set up housing or pay for health insurance.

Regardless of how a person plans to use the money, it should be noted that alimony is taxable income. If this is not anticipated, the amount actually received may not fit the intended budget, causing financial difficulty.

When a spouse is able to adapt to a new standard of living and does not need the support to make ends meet, experts still recommend cautious planning. They suggest creating a savings account in case of a future emergency. By viewing the income as a safety net and budgeting accordingly, a person may be able to prevent an unforeseen financial disaster.

No Comments

Leave a comment
Comment Information
Lorrie J. Zahodnic

"I will hold you up until you can stand on your own two feet."

Lorrie J. Zahodnic, P.C. has provided skilled and compassionate legal guidance to Michiganders in family law matters for over 20 years.

Learn More About Lorrie
Have A Question? Ask Lorrie

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe To This Blog’s Feed
Review Us
FindLaw Network