If you are going through a separation or divorce, alimony, also known as spousal support, may play a role, particularly when one spouse earns significantly less than the other. Alimony is intended to help the lower-earning spouse maintain a standard of living reasonably comparable to the one established during the marriage, while recognizing that there are now two households to support.
Alimony is not an automatic part of every divorce in New Jersey, and it is not the same as equitable distribution. Equitable distribution looks back at what the parties acquired during the marriage and divides those assets. Alimony looks forward, and is used to balance out differences in the parties’ economic circumstances after the divorce. The two work together: courts try to avoid what is commonly known as “double dipping.” For instance, if a pension or 401(k) is divided as part of equitable distribution, the portion already divided generally cannot be counted again as income when calculating alimony.
Under current federal tax law, for divorces finalized after 2018, alimony is not deductible by the paying spouse and is not taxable income to the receiving spouse. Agreements finalized earlier may follow the prior rules.

