In some divorce cases, alimony can be awarded to a former spouse that is in need of spousal support if the paying spouse has the ability to pay. Alimony is considered after equitable distribution. The court may grant alimony to either spouse. The requesting spouse must demonstrate a need for alimony and the ability of the other spouse to pay alimony.
In divorce or dissolution of marriage cases, the tax treatment of alimony or spousal support changed radically at the end of 2018. These changes will affect all cases where alimony is agreed to, or ordered by the Family Court. Effective January 1, 2019, the changes to the tax treatment of alimony have turned upside down the historical tax treatment of alimony