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Alimony After-Tax

Negotiate > Alimony After-Tax

The screen may also be called Spousal After Tax, or Maintenance after Tax, depending on what term is most common in your state.

This screen calculates the after-tax cost of alimony.

For agreements entered into during and after 2019, the after-tax cost of alimony will be the same as the pretax cost of alimony.

In those cases, this screen is not valuable.

For agreements entered into before 2019 and modified in 2019 and after, you may retain the tax deduction/taxability of the alimony.

For those agreements, this screen continues to have value.

It answers the question that clients frequently asked, “how much will the alimony really cost me?”

The screen will calculate only if there is alimony both in the current year and into the next year.

The reason is that the current year is often a partial year, and the software assumes that you want to know the after-tax cost and benefit of alimony during a full year.

The software performs two calculations.

The first calculation is the after-tax cost to the payer.

That is the top section of the screen.

The last two lines show the actual cost, and then the after-tax cost, on a monthly basis.

The second calculation is the after-tax benefit to the recipient.

That is the second section of the screen.

The last two lines show the actual benefit, and then the after-tax benefit (which will be the same or less).