This topic is one of the most heated issues that arises in separation and divorce. It is crucial that both spouses understand the law and make decisions that consider the financial well-being of both people.
Spousal support is available under Pennsylvania Law in some cases. It is based on a formula that is 30% of the difference between incomes if there are child support payments, and 40% of the difference if there are not. Spousal support only continues until a divorce decree is issued by the court.
Alimony is available under Pennsylvania Law in some cases. It is based on a list of 17 factors which must be considered to determine if alimony will be paid and, if so, for how long. The Attorney-Mediator works with both people to make sure they understand the law and make an agreement that is fair and reasonable.
Spousal Support is not tax deductible but Alimony can be in most situations. Sometimes there is a clear tax advantage to alimony for both people, so it is always important to have the Accountant-Mediator identify the best tax treatment of alimony in Step 4 Save Taxes.
The Alpha Center program for Divorce Mediation places strong emphasis on carefully analyzing the financial needs of both people and their children before deciding on any future payments. No one enjoys doing budgets, but after they are complete most people feel much more at ease knowing exactly how their financial lives will look in the future.