Unallocated Support: What You Need to Know

Close up of $100 notes

When it comes to divorce in Illinois, most individuals know of two types of support: spousal support, also known as maintenance or alimony, and child support. This means that when people hear that there’s another type of support, they get confused.

In this article, we cover the basics of unallocated support and the benefits of choosing unallocated support over separate maintenance and child support in your divorce.

Defining Unallocated Support 

Simply put, unallocated support is combined maintenance and child support. It means that the spouse receiving support receives one payment instead of two.

This arrangement is beneficial for reasons other than convenience. In fact, unallocated support has other benefits too, both for the spouse receiving the payments and for the spouse who is paying.

Benefits of Unallocated Support

There are different tax implications of all types of support payments. Child support payments are non-taxable income for the parent receiving the payments, but aren’t tax deductible for the spouse paying support. Maintenance, on the other hand, is just the opposite: the person receiving payments must pay taxes on that income, whereas the spouse paying maintenance can deduct the payments from his or her income.

Because child support is almost always more than maintenance, this can leave spouses who do pay support in a precarious position. Unallocated support presents a simple remedy because it typically means that the spouse who is paying pays slightly more to offset the taxes paid by the spouse receiving support, while still being able to deduct the full amount, which would include money that would otherwise be classified as child support.

This means there are dual benefits to an unallocated support arrangement:

  • More money up-front for the spouse receiving support; and
  • Greater tax breaks for the spouse paying support

Explore Your Options for Unallocated Support

Because both maintenance and child support are issues covered in your Marital Settlement Agreement, unallocated support would be set before you get divorced. Thus, it’s important that you discuss the possibility for unallocated support with your Naperville divorce lawyer if you believe this will be the right option for you.

Larry offers clients 35 years of experience, meaning that if unallocated support is the right strategic decision in your case, he’ll recognize and discuss your options with you. If you believe unallocated support may be something that makes sense for you, contact Larry to take advantage of your free, 30-minute consultation today! Or, if you prefer, you may request an in-person consultation at our office here.

We look forward to speaking with you so you better understand your options for support in your case!

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