Spousal Support: Factors That Determine Alimony

Understanding Spousal Support in Divorce

Spousal support, commonly known as alimony, is a payment from one spouse to the other during or after divorce. Its purpose is to help the lower-earning spouse maintain a reasonable standard of living and transition to financial independence. The amount and duration of spousal support depend on numerous factors that vary by state.

Types of Spousal Support

Courts may award different types of spousal support depending on the circumstances:

Temporary Support

Temporary support is awarded during the divorce proceedings to help the lower-earning spouse maintain their standard of living until the divorce is finalized. It automatically ends when the final decree is entered and permanent support terms are established.

Rehabilitative Support

This is the most common type of permanent support. It is designed to help the receiving spouse become self-supporting by obtaining education, training, or work experience. Rehabilitative support has a defined end date or milestone.

Permanent Support

True permanent support, which continues indefinitely, is becoming less common. It is typically reserved for long marriages where the receiving spouse is unlikely to become fully self-supporting due to age, health, or other factors.

Reimbursement Support

This type compensates one spouse for supporting the other through education or training. For example, if one spouse worked to put the other through medical school, reimbursement support compensates them for that sacrifice.

Factors Courts Consider

While the specific factors vary by state, courts generally consider the length of the marriage, each spouse's income and earning capacity, the standard of living during the marriage, each spouse's age and health, contributions to the marriage including homemaking and child-rearing, one spouse's support of the other's education or career advancement, the impact of child custody on the custodial parent's earning ability, each spouse's assets and debts, and the time needed for the receiving spouse to become self-supporting.

How Alimony Is Calculated

Some states use formulas to calculate spousal support, while others leave it to the judge's discretion. Common formula-based approaches consider the difference between the spouses' incomes and apply a percentage, often 30-40% of the difference. The duration is often tied to the length of the marriage, with guidelines like one year of support for every three years of marriage.

Even in formula states, judges have discretion to deviate from the formula based on the specific circumstances of the case.

Tax Treatment of Spousal Support

For divorces finalized after December 31, 2018, spousal support payments are not deductible by the paying spouse and are not taxable income for the receiving spouse. This change significantly affects the economics of spousal support and should be factored into negotiations.

Modifying Spousal Support

Spousal support can typically be modified if there is a substantial change in circumstances, such as a significant change in either party's income, the receiving spouse's remarriage, which usually terminates support, the receiving spouse cohabiting with a new partner, a serious health issue affecting either party, or retirement of the paying spouse.

Negotiating Spousal Support

When negotiating spousal support, consider the total financial picture rather than focusing on the monthly amount alone. A lump sum payment, larger share of marital assets, or shorter duration with a higher monthly amount may be preferable to long-term monthly payments. Consider the certainty and enforceability of different arrangements.

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