Maintenance, also known as alimony or spousal support, is the financial support paid from one spouse to the other spouse following a divorce. The purpose of maintenance is to enable a spouse who is not capable of supporting him or herself to continue to have the lifestyle to which he or she became accustomed during the marriage. The Illinois maintenance statute requires the Court to consider a number of different factors to determine if an award of maintenance is appropriate. If the Court deems that maintenance is warranted, the next step is calculating the amount and duration of maintenance.
In January of 2016, the Illinois legislature enacted a statute which provides a formula for calculating the amount and duration of maintenance. In cases where the parties’ combined gross income is less than $500,000.00, the Illinois Maintenance Statute provides a formula to determine the amount and duration of maintenance. However, under certain circumstances, a Judge may deviate from the statutory formula. In cases with a combined gross income of $500,000.00 or more, the Court has broad discretion in determining the amount and duration of maintenance. Following an award of maintenance, different factors can impact the amount and duration of maintenance, including loss of employment, changes in either party’s income, remarriage, cohabitation or death. Our attorneys have extensive experience in handling maintenance related issues. We will thoroughly analyze lifestyle, income, cash flow and tax consequences to achieve an optimal result for you which protects your financial future.
Under Illinois law, maintenance payments were previously deductible by the payor and taxable to the payee for income tax purposes. However, due to the recently enacted federal tax reform, this was no longer permitted commencing January 1, 2019, and deductibility and taxability of maintenance under new judgments was eliminated. These complex changes in the tax law can profoundly impact the calculation and payment of maintenance. The divorce attorneys at Collins Family Law will work with you to achieve creative solutions which serve your best interests.
Call Collins Family Law at 847-232-4206 for a free consultation to discuss the details of your unique legal case.