Alimony and Spousal Support
Alimony and spousal support is money that is paid to one partner in a marriage when the marriage ends. Typically alimony or spousal support is calculated as part of the divorce degree but it can also be part of the separation agreement if there is a formal separation agreement and if both parties agree to it. When a couple is breaking up it’s very important that they understand spousal support and how it can impact them both.
Laws that govern alimony and spousal support are different in every state, and if the couple has already separated and they live in different states that can complicate the calculation of any support. Alimony or spousal support isn’t guaranteed. If a judge awards alimony or spousal award the amount of money awarded will be based on several different factors.
What Are the Types of Alimony/Spousal Support?
Alimony and spousal support are really catch-all terms that refer to an amount of money that one spouse pays another after a divorce. Many people assume that the spouse who contributed less financially to the household will automatically get spousal support but that’s not the case. There are actually several different types of spousal support:
Temporary/Pendente Lite Support
Temporary/pendente lite support is an amount of money that one spouse pays the other monthly only while the two parties are in the process of negotiating the divorce and while the divorce is going through the court. With this type of spousal support as soon as the divorce is finalized the support will stop.
Rehabilitative Support
Rehabilitative support or rehabilitative alimony is support that is paid by one spouse to another for a set period of time. In a situation where a couple is divorcing and they have no mutual children this is the most common type of spousal support awarded. Rehabilitative support can help pay the living expenses of one spouse while they go back to school, get retraining for a new job, or move out and establish their own independent residence. Typically rehabilitative alimony is granted for 1-2 years, but it can depend on many different factors.
Permanent Support
Permanent support is not as common now as it was before most married couples both worked. Permanent alimony is alimony that continues until:
- The death of either party
- The payee spouse remarries
- The payee spouse lives with a partner they represent at their spouse
- An extreme decline in financial circumstances of the payer spouse
If permanent support is granted it’s usually because one of the members of the couple has an extreme illness or a disability that makes it impossible for them to work. Permanent alimony may also be granted if the spouse has never worked and the marriage lasted for a long time. For example, if a woman with no higher education or job training stayed home throughout a 20 year marriage to raise the couple’s children while the other partner provided financially the woman may be awarded permanent alimony.
Lump-Sum Support
Lump-sum support is a one time payment, usually taken from a retirement account, investment property, home sale, or other asset. A spouse may accept a lump-sum support payment in lieu of their interest in that asset. For example, one of the members of the couple may accept a lump-sum support payment and give up their interest in a long term investment or annuity.
Reimbursement Support
Reimbursement support is granted after one of the members of the couple has supported the other and then the couple divorces immediately after. For example, a woman who worked two jobs so her spouse could get a degree may be granted reimbursement support for the support she provided to her partner while they were in school.
What Factors Are Considered in Determining Alimony/Spousal Support?
There are many factors that go into determining alimony or spousal support. Some people still think that the spouse who didn’t initiate the divorce will get half of everything but that’s no longer the case. These days both partners in a marriage usually work so figuring out who should pay spousal support and what type of alimony should be granted really depends on a wide range of factors like:
- • Duration of the marriage
- • Income and earning capacity of each spouse
- • Standard of living during the marriage
- • Age and health of the spouses
- • Contributions to the marriage (financial and non-financial)
- • Future financial needs and circumstances
The best thing to do if you are trying to figure out if you would qualify for spousal support or alimony and how much money you would receive is to speak with an experienced family law attorney. A family law attorney may be able to give you advice based on your situation.
How Do I Calculate Alimony/Spousal Support?
Judges have a lot of leeway when it comes to calculating spousal support amounts. If the two parties can agree to an amount between the two of them that’s usually the best case scenario. But if they can't, the judge will look at factors like the standard of living that the couple had when they were married, the lower-earning spouse’s ability to earn, and other factors. There also may be state formulas that the judge has to use to calculate alimony.
But in general the way that a judge will calculate spousal support is to award 40% of the higher-earning spouse’s income as spousal support either for a set amount of time or indefinitely. That changes if there are children from the marriage though. Combined spousal support and child support can’t be more than 50% of the higher earner’s net pay in most states.
Spousal support can be modified if either party falls on hard times. If the spouse ordered to pay the support can’t pay it because they lose their job or become disabled the judge can order either a temporary or permanent modification. And if the receiving spouse loses their job, needs to go back to school for retraining, or has some other temporary hardship the judge may increase the support for a set period of time.
What Are the Tax Implications of Alimony/Spousal Support?
How alimony is taxed has recently changed. In the past the spouse paying support would have that amount deduced from their total income as it was used to calculate Federal tax. The receiving spouse counted that money as taxable income. But the Tax Cuts and Jobs Act of 2017 changed the rules. Now the person paying the support doesn’t have the total amount of the support deducted from their total income. And the recipient of the alimony doesn’t have to declare it as taxable income.
Who Enforces Alimony/Spousal Support?
If the spouse that is ordered to pay alimony or spousal support doesn’t pay the support the court and the person receiving the support have options. The spouse not receiving the support needs to file a motion with the court that they have not received the support or that the other spouse is refusing to comply with the order to pay support.
The judge who ordered the support can issue an order holding the paying spouse in contempt of court. This adds fines and penalties onto the amount already owed to the other spouse. If the paying spouse doesn’t pay the judge can issue a writ of execution which allows for the seizing of property or bank accounts to pay the amount owed.
If the paying spouse still doesn’t pay or has no assets to seize, the judge can order income withholding, where a portion of the paying spouse’s income or income tax returns can be taken to pay the receiving spouse.
Alimony/Spousal Support in Different Jurisdictions
Each state has different regulations and guidelines when it comes to alimony or spousal support. But in most states spousal support is rehabilitative or temporary and designed to help the lower-earning spouse establish a new home and get on their feet financially. These days it’s rare for a spouse to receive permanent support because it’s customary for both men and women to work. In the past when men were the providers and women stayed home to raise children permanent support was much more common.
Negotiating and Modifying Alimony/Spousal Support
Negotiating changes to alimony awards can be difficult, but if both parties agree to the modification it can make the process much simpler and faster. Typically a judge will agree to any medication that both parties agree to. But if one party doesn’t agree the judge will have to decide whether or not the modification is fair to both parties. Because financial negotiations are contentious, having a negotiator or a mediator can make it much more likely that the other party will agree to a modification.
Get Help With Alimony/Spousal Support
Alimony or spousal support can be a complicated and divisive issue within a divorce. Since every state has its own rules and regulations the best thing to do when you have questions about alimony is talk with an experienced family law attorney. Fill out a Free Case Evaluation now to get connected with an independent family law attorney who subscribes to the website and may be able to help you.
