When a married couple decides to end their marriage in Illinois, they must address several important matters, one of which is financial support for the spouse who earns less. Many people use the terms “spousal maintenance” and “alimony” interchangeably, assuming they are the same thing. However, in Illinois, these two terms actually carry distinct meanings. Understanding the differences between them is crucial for spouses going through this challenging time, as it can bring much-needed clarity and confidence to their decision-making process.
The Definition of Spousal Maintenance
Spousal maintenance pertains to the financial assistance provided to the spouse with a lower income for a specific duration after the divorce. It intends to enable the recipient to maintain a certain standard of living that was established during the marriage. This form of support is designed to be temporary and takes into account various factors when determining its duration and amount. These factors include:
- The length of the marriage
- The income and future earning potential of each spouse
- The age and health of each spouse
- The standard of living maintained during the marriage
- Any significant non-monetary contributions made by a spouse throughout the marriage
While the amount of spousal maintenance is determined based on an established formula defined by Illinois law, it can be adjusted based on other factors, such as child support payments or substantial assets retained by one spouse after the divorce.
The Definition of Alimony
In certain states, the term "alimony" is used interchangeably with "spousal maintenance." However, in Illinois, "alimony" carries a different meaning. Specifically, it refers to the financial support awarded to a spouse throughout the divorce process. The purpose of alimony in Illinois is to assist the recipient in maintaining a certain standard of living during the often lengthy and emotionally challenging divorce proceedings. Unlike spousal maintenance, alimony is intended to be temporary and is typically paid as a lump sum or through installments over a relatively short period.
Key Distinctions Between Spousal Maintenance and Alimony in Illinois
Understanding the differences between spousal maintenance and alimony in Illinois is crucial for divorcing couples. Here are the key distinctions:
- Purpose: Spousal maintenance aims to enable the lower-earning spouse to maintain a certain standard of living after the divorce is finalized. On the other hand, alimony is meant to provide financial support to a spouse during the divorce process itself.
- Amount and Duration: Spousal maintenance is typically awarded for a specific period, determined by a formula outlined by Illinois law. Adjustments to the amount and duration are possible, considering other relevant factors. Conversely, alimony is often awarded as a lump sum or as payments spread out over a relatively brief period.
- Tax Implications: Spousal maintenance payments are tax-deductible for the paying spouse, while the recipient is required to report them as taxable income. However, following the December 2017 tax law changes, alimony payments are no longer eligible for tax deductions or taxable income.
Conclusion
If you find yourself going through a divorce in Illinois, it is crucial to understand the distinctions between spousal maintenance and alimony. Despite the common interchangeability of these terms, they carry different meanings and implications within the state. Armed with this knowledge, you will be better equipped to make informed decisions regarding your finances and navigate your future with confidence.