If you already know you’ll have to pay alimony in Georgia, you might be wondering whether there is a “silver lining.” Is there any advantage to handing over large sums of money to your ex? How can you view this as a positive thing instead of a burden? This is a conversation you might want to have with an experienced family law attorney.
Are There Tax Advantages to Paying Alimony in Georgia?
Unfortunately, there are no real tax advantages associated with paying alimony in Georgia. This is a relatively new reality that spouses must accept, and it went into effect in 2019. Under the Tax Cuts and Jobs Act, the payer can no longer deduct alimony payments to receive tax advantages. The new tax system favors the payee, who does not have to declare alimony as income for tax purposes.
Paying Alimony Helps You Avoid Legal Consequences
Perhaps the most obvious advantage to paying alimony is simple: You won’t experience any legal penalties. If you fail to pay alimony, the family court could hold you in contempt. Because violating a court order is technically a criminal offense, this can have all kinds of unintended and negative consequences.
Most spouses never reach the stage in which criminal charges are necessary. Instead, the family court uses incentives to ensure these payments. For example, the court might intercept your tax refund or garnish your wages. The court could even revoke your professional and your driver’s license until you pay the owed amounts.
Paying Alimony Can Reduce Your Child Support Obligations
If you are paying alimony to an ex who is also the parent of your child, these payments could potentially offset your child support obligations. While alimony has no relevance for income tax purposes, the family court may nonetheless consider it as “income” while calculating child support. The more alimony you pay, the less child support you may need to hand over (and vice versa).
You Can Control the Situation if You Choose to Pay Voluntarily
Generally speaking, it always makes sense to resolve alimony through alternative dispute resolution (ADR) instead of litigation. For example, you and your ex might meet privately with a mediator to discuss the subject of alimony. During these private discussions, you can control the situation with a wider range of more flexible potential outcomes.
For example, you and your ex might agree that a lump-sum alimony payment makes the most sense. With this approach, you can simply pay your ex a sum of money and walk away. This ensures you’ll never have to worry about future disputes over alimony or potential “modifications.” You might also choose to expressly make your monthly alimony payments “non-modifiable” in a written divorce agreement.
Can an Alimony Lawyer in Georgia Help Me?
While there may be zero tax advantages associated with paying alimony, there are many ways you can approach this financial transaction in an optimistic, effective manner. From a lump-sum payment to negotiating during mediation, you can limit this financial burden in various ways. Contact our experienced Georgia alimony attorneys at Lankford & Moore Law today to learn more about the next steps.
