Last week, we discussed some of the factors that are considered in Florida when it comes to alimony cases. While many people might think that alimony payments are great for the person receiving and not so great for the person paying, that isn't always the case. There are some specific tax considerations for you to think about if you are in the midst of a case involving alimony.
Well-meaning parents wanting to ensure passage of adult children's inheritances into trusts often wish to keep the intended beneficiary's former spouse from asserting any claim to trust funds in case of divorce and possible alimony. In states such as Pennsylvania, this may not be the case. Article 5 of the Uniform Trust Code, UTC, shields assets held by discretionary or spendthrift trusts from creditor claims but does not disturb the legal rights of children and former spouses of primary beneficiaries to entrusted assets.