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Why Year-End Is the Right Time to Review Spousal Support

As the year comes to a close, many people are focused on wrapping up projects, setting goals, and preparing for tax season. But there’s one more important task that shouldn’t be overlooked—reviewing your spousal support arrangements.

Whether you pay or receive alimony, your financial circumstances can change throughout the year. New jobs, promotions, layoffs, or unexpected expenses can all impact what’s fair and sustainable when it comes to spousal support. Failing to review these details before the year ends can lead to financial strain, missed opportunities for modification, or even legal complications down the road.

By reviewing your spousal support agreement now, you can make informed, proactive decisions before the new year begins. This allows you to adjust for financial changes, remain compliant with North Carolina’s family law requirements, and enter January with confidence and clarity.

Understanding Spousal Support in North Carolina

What Is Spousal Support?

Spousal support—also referred to as alimony—is a court-ordered or voluntarily agreed-upon payment made by one spouse to the other after separation or divorce. The purpose is to provide financial assistance to the dependent spouse, particularly when there is a significant difference in income or earning potential between the two parties.

It’s not a one-size-fits-all arrangement. Instead, the amount, duration, and type of support depend on each couple’s unique financial circumstances, length of marriage, and standard of living during the relationship.

Types of Alimony in North Carolina

1. Post-Separation Support:
This is a temporary form of financial support provided while a divorce is still pending. It helps the dependent spouse maintain stability and meet essential needs, such as housing, utilities, or health insurance, during the transition period.

2. Permanent or Rehabilitative Alimony:
Once a divorce is finalized, the court may order long-term or rehabilitative alimony, depending on the circumstances.

• Permanent alimony may be awarded after lengthy marriages where one spouse is unable to become self-supporting.
• Rehabilitative alimony is typically time-limited and helps a dependent spouse gain education, training, or employment to become financially independent.

The Purpose of Alimony

At its core, alimony exists to promote fairness and prevent financial hardship. It recognizes the contributions each spouse made during the marriage—whether through income, child-rearing, or household support—and aims to balance the financial impact of divorce.

For example, if one spouse left the workforce to support the other’s career or to care for children, spousal support ensures that both parties maintain a reasonable standard of living as they move forward separately.

Why It Matters to Work with a Charlotte Spousal Support Lawyer

Navigating alimony laws can be complicated, especially as your financial situation changes over time. A spousal support lawyer in Charlotte, NC can help you determine what type of support applies to your situation and whether it needs to be adjusted.

Local family law experience is particularly valuable at year-end, when many clients are juggling new jobs, bonuses, tax considerations, and family obligations. Having a knowledgeable attorney review your financials and court order ensures that any modifications are handled properly—and that you’re set up for a stable start to the new year.

Why the End of the Year Matters for Alimony

The end of the year isn’t just about closing financial books or making resolutions—it’s a pivotal time to evaluate your spousal support (alimony) arrangements. As income levels, expenses, and tax obligations shift, reviewing your current agreement can help ensure it remains fair, accurate, and sustainable.

Financial Changes

Year-end often brings bonuses, commissions, or fluctuations in business income that can significantly alter financial standing for either spouse.

• If your income has increased, it may affect your alimony payments or create an opportunity for modification.
• If your ex-spouse’s earnings have changed substantially—whether higher or lower—that could also justify an adjustment to the support amount.

Taking time to reassess now prevents surprises when the new year’s budget rolls around and allows you to maintain compliance with your court order or agreement.

Tax Considerations

Since the federal tax law changes in 2019, alimony payments are no longer tax-deductible for payers, nor are they considered taxable income for recipients. While that simplified reporting for many families, it also made annual financial reviews more important.

It’s wise to reassess your post-divorce budget before filing taxes, ensuring that payments or receipts of alimony align with your current financial reality. An annual review can also uncover any adjustments needed to keep you financially balanced heading into the new year.

Employment Shifts

Many people experience job transitions toward the end of the year—promotions, layoffs, or even retirement. Each of these changes can have a major impact on your ability to pay or your need for support.

If you’ve had a reduction in income, it’s essential to address it as soon as possible to avoid falling behind on payments. Likewise, if your ex-spouse has had a significant income change, you may have grounds to request a modification to reflect those new circumstances.

Inflation and Cost of Living Adjustments

With rising living costs, especially in housing, childcare, and healthcare, the amount of support that was once sufficient may no longer meet your family’s needs. Alimony agreements can—and should—be revisited to reflect the realities of inflation and today’s economy.

Reviewing your agreement ensures that both parties remain financially stable and that the support arrangement continues to serve its intended purpose of fairness.

Upcoming Court Schedules

Family courts in North Carolina tend to become busier at the beginning of the year as new cases are filed. By reviewing and addressing potential alimony issues before year-end, you can avoid delays and get a head start on any modification you may need.

If you anticipate filing for an alimony modification in NC, acting before January often means faster court dates and quicker resolutions.

When and How to Modify Spousal Support

Life changes—and when it does, your spousal support order may need to change too. North Carolina law allows either party to request a modification of alimony when there has been a “substantial change in circumstances.”

Grounds for Modification

Common reasons for modification include:

• Significant change in income or employment: If either spouse’s earnings have increased or decreased materially.
• Serious illness or disability: If health conditions affect earning potential or financial needs.
• Change in living expenses: Major shifts in housing, childcare, or cost of living can justify adjustments.
• Remarriage or cohabitation: If the recipient spouse remarries or enters a new supportive relationship, alimony may be reduced or terminated.

Each case is unique, and the court will consider both financial need and the ability to pay before approving any changes.

Process Overview

If you believe your circumstances warrant a modification, here’s how to proceed:

1. Review your current alimony order or agreement. Understand the terms, duration, and any built-in conditions for review.
2. Document financial changes. Gather pay stubs, tax returns, medical records, or any evidence that supports the change in circumstances.
3. Consult an experienced family law attorney. A knowledgeable professional can help determine whether your situation meets the legal threshold for modification and guide you through next steps.
4. File a motion or negotiate through mediation. Depending on the situation, modifications can be made via formal court filings or private agreements, as long as both parties consent.

The Goodman Law Firm’s Approach

At The Goodman Law Firm, Attorney Kara K. Goodman helps clients navigate these transitions with both legal precision and emotional understanding. She works closely with clients to review their current agreements, assess financial realities, and ensure that any modification upholds fairness for both parties.

Life changes quickly—and your support order should reflect that. With Kara’s experience in North Carolina family law, you can move into the new year with confidence, stability, and peace of mind.

Start the New Year Prepared — Protect Your Finances and Peace of Mind

As the year ends, take a moment to ensure your spousal support arrangement reflects your current financial reality. Proactive planning today can prevent misunderstandings and legal headaches tomorrow.

Whether you’re paying or receiving support, you deserve stability and fairness. Reviewing your agreement before the year closes gives you the clarity to step into the new year with confidence and control over your financial future.

Don’t wait for financial stress or changing circumstances to force a rushed decision—address them now, with guidance you can trust.

If you’re ready to review or modify your spousal support agreement before the year ends, contact The Goodman Law Firm, PLLC today. Attorney Kara K. Goodman will guide you through every step with clarity, compassion, and proven legal experience—so you can start the new year on solid ground.

Contact Information

The Goodman Law Firm, PLLC
📍 10020 Monroe Road, Suite 170-288, Matthews, NC 28105
📞 (704) 502-6773
📧 kg@goodmanlawnc.com
🕘 Monday — Friday | 9:00 a.m. - 5:00 p.m.
🌐 www.goodmanlawnc.com

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