An alimony payment is a periodic predetermined sum awarded to a spouse or former spouse following a separation or divorce.

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Topic No. 452 Alimony and Separate Maintenance

An alimony payment—also called a “spousal” or “maintenance” payment in some parts of the United States—is a periodic, predetermined sum awarded to a spouse or former spouse following a separation or divorce. Some of the things that a judge will consider include:
The amount that each party may reasonably earn every month
The reasonable expenses that each party will incur
If alimony can make it possible for the receiving party to maintain a lifestyle that is close to what the couple had during the marriage
The length of the marriage
The age and health of each spouse
The earning capacity of each spouse
The financial situation of each spouse
The economic and noneconomic contributions that each spouse made to the marriage
Any economic opportunities lost due to the marriage
Any other factor that a judge deems pertinent to determining whether alimony should be awarded—and how much
Alimony payments may not be issued if both spouses have similar annual incomes or if the marriage is fairly new. In California, for example, there are five:
**Temporary Alimony**—Paid while the divorce is pending, it can include divorce costs and daily expenses, and it ceases once the divorce is finalized.
**Permanent Alimony**—Paid on a monthly basis, it continues until the death of either spouse or the remarriage of the lower-earning spouse. Instead of cash payments structured into divorce decrees starting in 2019, some tax advisors suggest that the higher-earning partner award the spouse an individual retirement account (IRA), which is in effect a tax deduction, as no taxes had been paid on the amounts added to the account. An alimony payment—also called a “spousal” or “maintenance” payment in some parts of the United States—is a periodic, predetermined sum awarded to a spouse or former spouse following a separation or divorce.

Alimony Payment

Alimony payments are legally mandated monetary transfers from one ex-spouse to another in order to provide financial support.

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Alimony refers to court-ordered payments awarded to a spouse or former spouse within a separation or divorce agreement. Alimony payments are paid to a spouse or former spouse for their support, while child support payments are paid to a child’s custodian and specifically intended to support one or more children from a dissolved relationship or marriage. **Reimbursement alimony—**Paid to reimburse a lower-earning spouse for expenses such as tuition or work training, it is not ongoing.
**Lump-sum alimony—**Paid in lieu of a property settlement, this is ordered when one spouse doesn’t want any property or items of value from their marital assets. However, The Tax Cuts and Jobs Act of 2017 eliminated the tax deduction for alimony payments for divorce agreements executed after Dec. 31, 2018, while also decreeing that alimony recipients will no longer owe federal tax on this support. Alimony refers to court-ordered payments awarded to a spouse or former spouse within a separation or divorce agreement.

Alimony

Community income is income earned by taxpayers who live in community property states.

Community income is the earnings of a taxpayer who lives in community property states. Community income corresponds with community property, which are assets or other property held in common by married couples in community property states. Only nine states are classified as community property states, but state laws vary, and some learn more toward community property than others. This marital property includes earnings (community income), all property bought with those earnings as well as all debts accrued during the marriage. Community income is income earned by taxpayers who live in community property states.

Community Income

A court order acceptable for processing (COAP) grants an ex-spouse or dependent of a federal employee rights to federal benefits they enjoyed.

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Retirement Topics - QDRO - Qualified Domestic Relations Order

Exemption Procedures under Federal Pension Law

A court order acceptable for processing (COAP) is a legal ruling granting the ex-spouse or dependent of a federal employee the right to receive all or a portion of the benefits of a government retirement plan in the event of a divorce, a separation, or an annulment of a marriage. There are three types of retirement benefits divisible in a COAP: an employee annuity, a former spouse survivor annuity, and a refund of employee contributions. An employee annuity, a former spouse survivor annuity, and a refund of employee contributions are the three types of benefits divisible with a COAP. A court order acceptable for processing (COAP) is a legal ruling granting the ex-spouse or dependent of a federal employee the right to receive all or a portion of the benefits of a government retirement plan in the event of a divorce, a separation, or an annulment of a marriage. Qualified retirement plans—such as defined-contribution plans, defined-benefits plans, simplified employee pension plans (SEPs), employee stock ownership plans (ESOPs), profit-sharing plans, and 401(k)s—are all governed by ERISA.

Court Order Acceptable for Processing (COAP)

A domestic relations order gives a former spouse or dependent the right to a portion of the benefits of an employee’s qualified retirement plan.

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FAQs About Qualified Domestic Relations Orders

Employee Retirement Income Security Act (ERISA)

A domestic relations order (DRO) is a court order that gives a spouse or dependent the right to receive all or a portion of the benefits of an employee’s qualified retirement plan in the event of divorce. When an order is sent by an attorney to a plan administrator for review, the employer or administrator applies a checklist to ensure that the plan meets the requirements for it to be qualified and bound by the order. A domestic relations order (DRO) is a court order that gives a spouse or dependent the right to receive all or a portion of the benefits of an employee’s qualified retirement plan in the event of divorce. Under federal laws, qualified plans like defined benefit plans, ESOPs, 401(k) plans, and profit-sharing plans require a QDRO in order to distribute benefits to an alternative payee. If the account is a qualified defined benefit plan, the alternate payee may not receive any payout until the employee retires or reaches the normal retirement age as defined by the plan.

Domestic Relations Order – DRO

A legal separation is a court-ordered arrangement whereby a married couple lives apart, leading separate lives. 

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Table of Contents
What Is a Legal Separation? How a Legal Separation Works
Special Considerations
Other Types of Separation
Separation vs. Divorce vs. Annulment
Example of Legal Separation
Do You Need a Lawyer to Establish a Legal Separation?
Which States Allow Legal Separation?
How Much Does a Legal Separation Cost?
How Long Does It Take to Get a Legal Separation?
A legal separation is a court-ordered arrangement whereby a married couple lives apart, leading separate lives. Every petition for legal separation must include the following information:
The legal names of both spouses
The date and location of the marriage
The names of any children or dependents of the marriage
The proposed custody arrangement of the children
The date when—and addresses where—the couple began living apart
Any child support arrangement, as well as any other financial responsibilities to which both parties have agreed If both parties are in agreement, don't contest the separation, and do not hire a lawyer to create the separation petition, the cost of legal separation will only amount to the court filing fee, usually around $50 to $300 depending on the state. A legal separation is a popular alternative to a divorce when the parties are unsure of the state of their marriage but want to establish financial boundaries and responsibilities, such as separation of assets, custody of dependents, and child support.

Legal Separation

A natural guardian is a child’s biological or adopted mother or father.

A natural guardian, in legal terms, is a child’s biological or adopted mother or father. Failure to provide for a child can cause a natural guardian to lose custody of that child to a guardian appointed by a court. Failure to provide for a child can cause a natural guardian to lose custody of that child to a guardian appointed by a court. A natural guardian is empowered to make a wide range of decisions for a minor child, including medical and financial matters that legally require a parent or guardian’s consent. Someone else may be appointed guardian via a parent’s will or by a court if a parent, the natural guardian, is deceased or deemed unable to care for a child.

Natural Guardian

In a divorce, a qualified domestic relations order (QDRO) requires that a portion of retirement account assets be paid over to a former spouse. 

Retirement Topics — QDRO — Qualified Domestic Relations Order

QDROs: The Division of Retirement Benefits Through Qualified Domestic Relations Orders

A qualified domestic relations order (QDRO) is a legal document, typically found in a divorce agreement, that recognizes that a spouse, former spouse, child, or other dependent is entitled to receive a predefined portion of the account owner’s retirement plan assets. A QDRO recognizes that a spouse, former spouse, child, or other dependent is entitled to receive some of the account owner’s retirement plan assets.
A court order cannot force a retirement plan to disburse any benefit not provided through the plan or require increased benefits from the retirement plan. A qualified domestic relations order (QDRO) is a legal document, typically found in a divorce agreement, that recognizes that a spouse, former spouse, child, or other dependent is entitled to receive a predefined portion of the account owner’s retirement plan assets. Benefits allocated to an alternate payee under a QDRO are not available for a subsequent spouse to receive as survivor benefits under the retirement plan. The QDRO grants the spouse a percentage of the participant’s investment in the contract, with the numerator being the present value of the benefits payable to the spouse and the denominator being the present value of all benefits payable to the participant.

Separation and Divorce

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