One of the perks of a high asset divorce in Kentucky is that you have more assets to use in your negotiations with your spouse. This can be quite beneficial when it comes to paying alimony. According to Investor’s Business Daily, finding different ways to appease a spouse’s request for spousal support can help you save money in the long run, especially since the tax changes from the Tax Cuts and Jobs Act.
This law is good for those who receive alimony because they no longer have to pay taxes on it, but if you are paying alimony, it is bad. You used to be able to claim it as an expense, but now you cannot, which could raise your overall tax liability. So, this changes the way you should approach this type of award.
You may be able to avoid extra tax liability by offering your spouse an alternative to spousal support. This is where your assets can be helpful because you need to be able to offer something large up front. You can try to increase the percentage of assets your spouse will receive or offer him or her some additional assets instead of alimony. This lets you pay in one lump sum instead of over time, which can be more beneficial to you.
If you cannot figure out an alternative, then at the very least, make sure to do your math on what any alimony award will do to your tax situation. You may be able to get a lower award amount. This information is for education only. It is not legal advice.