I was awarded an alimony figure based on my cost of living (calculated to the penny). However, although I receive the amount I was awarded, no allowance was made for the fact that I then have to pay tax on that money meaning the amount I end up with in my pocket is substantially less than my calculated cost of living. Is this normal? Or should the figure have been inflated to allow for the deduction of tax giving me a net figure equal to what my cost of living was calculated to be?
If your alimony award occurred or or after 1/1/19, then the alimony you receive is not taxable to you.
If your alimony award occurred on or before 12/31/18, then the alimony you receive is taxable to you and deductible to the payor. In this instance, alimony is not inflated to account for taxes. It is a consideration when negotiating the amount of alimony, that the recipient would have to pay income taxes on the alimony. If a judge awarded the alimony amount after an alimony trial, then he or she may or may not have considered the tax implications to you as the recipient.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.
Thanks,
My award was pre-2019.
So, if the arbitrator agreed I needed a certain figure based on my cost of living but did not award me enough so that after tax I did indeed end up with that figure, do I have a case to have things re-assessed or is it too late to do anything?
I presume it should have been up to my lawyer to be on top of stuff like that during the process.
Thank you for your assistance.
No, if an arbitrator made the decision, then there is no remedy to change that.
However, if your alimony terms are in a court order and if you have a substantial change in circumstances occurring since the order was entered, then you would be eligible to file for a motion to modify alimony and have the modification issue heard by a judge.
Anna Ayscue
Attorney with Rosen Law Firm Cary • Chapel Hill • Durham • Raleigh • Wake Forest
Rosen Online | Unlimited confidential access to a North Carolina attorney for $199/mo - click here
The response posted above is based upon the limited factual information made available and is not intended as a full and complete response to the question. The only reliable manner to obtain complete and adequate legal advice is to consult with an attorney, fully explain your situation, and allow the attorney sufficient opportunity to research the applicable law and facts required to render an accurate opinion. The basic information provided above is intended as a public service only, a full discussion with an attorney should be undertaken before taking any action. The information posted on this forum is available for public viewing and is not intended to create an attorney client relationship with any individual. These answers are provided for informational purposes only, a person should consult with their own individual legal counsel before taking any action that could affect their legal rights or obligations.