Alimony 
There are currently 2 blog entries related to this category.
Prenuptial Agreements In Michigan Still Enforceable?
Thursday, December 9th, 2010 at 12:57pm. 278 Views, 0 Comments.
Prenuptial agreements are valid and enforceable under current Michigan law. However, this hasn’t always been the case. Traditionally, the courts viewed such agreements as contracts that were being made in contemplation of divorce. The courts believed that such an agreement was essentially encouraging the divorce and separation of married couples and that such a concept was against public policy and unenforceable at law. Today’s courts recognize that our society has evolved over the years and that prenuptial agreements might actually promote the institution of marriage in circumstances where people might not otherwise enter into the risk that comes inherent with marriage without the capability to safeguard their personal assets. As a result of this…
Michigan Alimony Seven Tax Deduction Rules
Monday, June 21st, 2010 at 3:20pm. 3657 Views, 0 Comments.
Under certain circumstances the IRS allows a deduction for the payment of alimony. The deduction is granted, in part, because the recipient is taxed on alimony. The two spouses or former spouses end up paying less in taxes because alimony is deductible. The parties are shifting income from a higher to a lower tax bracket by transferring alimony from the higher income spouse to the lower income spouse. The high earner saves money that would otherwise be paid to the IRS. The recipient usually benefits because the payor is more generous because of the tax savings.
For example, if the higher earner makes $200,000 a year and pays the other spouse $80,000 a year, the higher earner is actually taxed on $120,000, not $200,000. The recipient might pay taxes of…