Alimony, also referred to as spousal support, involves payments that are made by one ex-spouse to the other once their divorce has been finalized. A court will typically award alimony in cases where there is a significant difference in earning power between the two ex-spouses, especially in cases where the marriage lasted many years.
The court will evaluate the requesting ex-spouse’s financial needs as well as the pay ex-spouse’s ability to provide support. The goal of providing alimony is to balance the financial resources of the divorcing spouses to help ensure fairness.
When a court is making a determination of whether to grant spousal support, it will carefully examine all of the relevant factors in the specific case, such as:
- The ability of a spouse to support themself;
- The necessary time to acquire employment or complete training to become employable;
- The standard of living that was established during their marriage;
- The duration of the marriage;
- The circumstances leading to the separation;
- The age of each party;
- The physical and mental condition of each of the ex-spouses;
- The ability of the ex-spouse who is paying alimony to support themselves while making payments; and
- Other financial responsibilities and resources of each party, for example:
- previous child support awards;
- financial obligations of each party;
- rights to receive retirement benefits; and
- the taxability or non-taxability of income.
The employment of each of the ex-spouses is also an important factor, as it will determine whether an ex-spouse can care for themselves after the divorce. It is one of the important factors courts examine when determining the need for alimony and the amount that will be provided.
What Are the Different Types of Alimony?
Alimony can be paid in a lump sum, on a temporary basis, or on a permanent basis. A court will usually consider the circumstances of each of the ex-spouses when it is determining the amount and duration of child support that will be ordered.
There are three main categories of spousal support. Depending on the laws of the state in which an individual resides, they may be able to request the one that best aligns with their unique situation, including:
- Temporary support while divorce is pending: If a non-earning spouse requires immediate financial support following a separation, the court may award temporary support while the divorce proceedings are ongoing;
- Short-term and rehabilitative support: In a shorter marriage, a court may order short-term support, which lasts for a predetermined period, as outlined in the court order;
- Rehabilitative support is a specific type of short-term support that is aimed at helping a dependent spouse re-enter the workforce through training or education;
- This type of support typically terminates when the recipient spouse secures employment, with the understanding that they have actively pursued the necessary training and job search; nad
- Long-term or permanent support: In a long-term marriage, typically more than ten years, a court may grant permanent support if it is determined that the dependent spouse is unlikely to re-enter the workforce and will require ongoing financial assistance;
- It is important to note that, in some states, permanent support is not available.
How Does Employment Affect Alimony?
Employment has a major effect on alimony. Because there is no real formula or fixed amount for alimony support amounts, it will depend on the income of each of the spouses as well as their ability to reasonably pay both the alimony payments and any child support obligations they may have.
In general, a family court will examine:
- The monthly income of each spouse;
- Reasonable day-to-day expenses; and
- Whether an award of alimony would maintain the standard of living that was established during the marriage.
An individual should not assume that their alimony payments will decrease if they change careers. A court will try to protect the rights of all parties involved, including the ex-spouse and children who have a right to the financial support that was ordered in the divorce.
If a paying ex-spouse chooses to earn less money so they can try to pursue a more meaningful or interesting career, it should not have a negative effect on the ex-spouse who is depending on that income. Courts can calculate alimony payments based on imputed income, which is a reflection of what the paying spouse would be earning if they were working at their potential.
How Does a Job Change Affect Alimony?
If an event occurs that dramatically affects the economic position of either of the ex-spouses involved, either one may petition the court for a modification of the spousal support order. In the alternative, the ex-spouse can also petition to eliminate the alimony payments totally.
Any modification request made to a court must demonstrate that the circumstances surrounding the original case have had a substantial or material change. The ex-spouse who is seeking the modification must show that there was a significant change before an increase, decrease, or elimination will be considered.
An ex-spouse may also show that there was a significant change in the other ex-spouse’s economic position and changing the order would be the only fair option. It is important for the paying spouse to continue making the required payments in order to avoid being held in contempt of court.
Common examples of life changes that may lead to a modification of an alimony order include:
- Loss of employment;
- A significant decrease in income;
- Loss of living increase;
- A court will often consider inflation as a reason to modify an alimony order;
- A physical or mental disability manifests that affects the spouse’s ability to work;
- A sudden financial hardship or a significant financial emergency;
- A significant increase in an ex-spouse’s income such as a:
- raise;
- promotion; or
- change in job; or
- A medical emergency;
- This applies to an ex-spouse’s ability to pay or an increased need of support for the receiving ex-spouse.
Should I Have a Financial Plan?
Financial plans outline an individual’s:
- Current financial status;
- Their financial goals; and
- What steps the individual will take to achieve their goals.
Financial plans usually include an analysis of the individual’s:
- Income;
- Expenses;
- Assets;
- Liabilities;
- Cash flow; and
- A budget or plan for saving and investing.
Financial plans can also include information regarding insurance coverage, retirement planning, and estate planning. A financial plan helps an individual make informed decisions about managing their financial resources to achieve their goals and maintain financial stability.
An individual can hire a financial advisor to help them create a plan for their specific needs. An individual can also use online financial planning tools that can help them create a budget, track your spending, and set financial goals.
A financial lawyer can help an individual with their financial planning by providing them with legal advice and guidance on many issues, including planning for alimony and any changes with their employment. If an individual knows they want to change careers and it will cause them to earn less income, they may be able to plan ahead and have enough savings to meet their personal goals and keep up with their financial obligations.
Should I Seek Professional Advice?
If an individual has been ordered to pay spousal support, they should begin by reviewing their alimony agreement as their court order so they are familiar with the details and requirements. The majority of marital settlement agreements and divorce judgments contain provisions that outline the terms of alimony payments, including the amount due each month and the payment schedule.
It is essential for the paying ex-spouse to make the payments as outlined in the agreement to avoid any liability. If an individual needs a modification of their order, they should consult with an attorney for advice.
In some situations, alimony can be terminated, such as if the receiving ex-spouse passes away or remarries. In some states, alimony can be reduced, suspended, or terminated, if the receiving ex-spouse cohabitates with another individual in a romantic relationship.
If a dispute arises regarding alimony payments, the parties can use family mediation as a tool to resolve the issue outside the courtroom. Mediation is a process where a neutral third party helps the ex-spouses reach an agreement on their issues.
If they cannot reach an agreement during mediation, they can still petition a court for the changes they desire.
Should I Consult with an Attorney?
If you have any issues, questions, or concerns related to alimony and employment, it is essential to consult with an alimony lawyer. Your lawyer can advise you of the consequences of an employment change and whether you will likely be required to pay the same amount of alimony.
If you need to modify or terminate an alimony order, your lawyer can help you file a petition with the court and will represent you during the court appearance. It is important to consider how a potential employment change can affect you if you are the ex-spouse required to make payments before you make a change to ensure you do not end up in additional legal trouble.
