Ongoing financial support, either after the date of separation through the date of divorce (post separation support) or following the finalization of a divorce (alimony) is available in North Carolina under circumstances. To be entitled to post separation support or alimony, the spouse seeking such must show that she or he does not possess adequate resources to adequate meet his or her financial needs and that the other spouse has the ability to provide financial assistance.
Unlike child support obligations, post separation support and alimony and be extremely difficult to calculate because it is not based on a formula or calculation. Various factors used to determine the amount of post separation support and alimony include (i) the marital misconduct of either of the spouses (include adultery and substance abuse); (ii) the earning capacities of both spouses; (iii) the duration of the marriage; (iv) the contribution of one spouse to the education, training or increased earning power of the other spouse; (v) the standard of living the spouses established during the marriage; (vi) the relative education of the spouses and the time necessary to acquire sufficient education or training to enable the spouse seeking alimony to find suitable employment; and (vii) the contribution of a spouse as a homemaker, among others.
Post separation support and alimony is tax deductible by the payor and taxed as a gain to the payee. However, not all payments under a divorce judgment or agreement are considered alimony. The Internal Revenue Service explicitly precludes child support payments, payments to keep up the payer’s property, or any voluntary payments as being alimony for tax purposes.
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