Page 56 - Family Law Services

The claim for child support may be challenged if there is a clear cause and effect of a contingency relat-
ed to a child. Pursuant to the temporary regulations, a contingency is assumed to have occurred if spous-
al support payments are to be reduced within six months before or after the child’s landmark event oc-
curs (a one-year period). A challenge can also be made if more than one child is involved, and payments
are to be reduced on two or more occasions that occur not more than one year before or after (a two-year
period) a different child of the couple passes a landmark event. If the amount by which the support will
be reduced can be linked to a landmark event, the amount of the reduction will not be treated as deducti-
ble support by the payor or income to the payee.

Nevertheless, this is a rebuttable presumption. If the taxpayer can show that the timing of the reduced
payments was determined independent of the child-related contingency, the amount of the reduction is
treated as deductible support.

Determining Spousal Support Awards

Depending on the jurisdiction, a number of factors are utilized by the courts to determine spousal sup-
port awards. Factors that may be considered to determine alimony awards include the needs of the recip-
ient, the ability of the payor to pay, the lifestyle of the parties during the period of the marriage, and the
length of the marriage. Other possible factors are the age and health of the individuals and the level of
potential income of the recipient. Intangible factors include the amount of property awarded and the
plans a party may have for increasing the income of the lower-earning spouse (rehabilitation). In certain
instances and jurisdictions, support may be awarded as punishment to repay the victim of another party’s
misbehavior. For a more in-depth discussion on the tax treatment of spousal support awards, see chapter
8, "Divorce and Taxes."

Types of Spousal Support

The following sections describe the various types of spousal support:

• Temporary

• Permanent

• Rehabilitative

• Reimbursement

• Limited duration

• Bridge-the-gap alimony

• Nominal

• Nonmodifiable

• Lump sum

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