Alimony or Spousal Support
Alimony, also known as "spousal support", is an obligation of monetary payment from one spouse to another after divorce or during legal separation. The payments are aimed at providing financial support for maintenance of basic necessities, especially if one spouse has less earning power than the other.
The legal theory behind alimony payments comes from the common-law assumption that spouses are obligated to provide financial support for one another. Alimony extends this obligation to periods after a marriage is terminated in order to assist the other spouse in achieving independence. Alimony is also called "maintenance".
Factors in Awarding Alimony
The laws governing alimony will differ from state to state, since divorce and separation laws are specific to each state. Judges have much discretion in determining which spouse will be awarded alimony payments. Spousal support is not required by law and is awarded on a more case-by-case basis. Traditionally, alimony was paid from husband to wife, although laws are not gender-specific and support may be paid between either spouse.
The most basic requirement for alimony is that the couple be actually married to one another. Courts will generally consider a variety of other factors in determining whether alimony should be paid, including:
- The income and financial disposition of each spouse upon divorce
- Living standards during marriage
- How long the marriage lasted
- Background information of each spouse, such as age, mental and emotional health
- Each spouse's financial needs and payment capability
Duration of Marriage
The duration of the marriage is important in determining alimony payments. Generally, the longer the marriage lasted, the more likely it is that spousal support will be required, because it is assumed that the spouses became dependent upon one another.
After a longer marriage courts will often award extended payments, sometimes up to lifetime support. In shorter marriages, courts assume that each spouse retained their financially independent status from before marriage. This means that in a marriage of short duration, courts will likely award payments in reduced amounts and time periods.
Expenditures Covered by Alimony
Spousal support payments are expected to be used by the receiving spouse for the purpose of "maintenance", or basic living expenses. These might include:
- Food, clothing, and shelter
- Transportation costs, so long as they are necessary or "reasonable
- Expenditures surrounding housing issues, such as heating or water bills
Expenditures not Covered by Alimony
Since spousal support is for the purpose of maintaining basic living expenses, it does not cover additional expenditures such as:
- Recreational activities or vacations
- Savings account funds
- Support for an excessive or wasteful lifestyle
Different Types of Alimony
There are four basic kinds of alimony awards:
- Temporary- awarded in instances of separation before divorce, while suit is pending
- Rehabilitative- awarded to the spouse with less earnings for the time period necessary to achieve financial independence
- Permanent- awarded to the spouse with less earnings until the spouse remarries or until the death of either party. Usually granted after longer marriages
- Reimbursement- awarded for reimbursing expenses accumulated during marriage (such as medical bills or educational funds)
Methods of Payment for Spousal Support
Spousal support is usually paid in installments on a monthly basis. This is done to accommodate the fact that most people receive wages on a monthly basis. Alimony received must be reported in tax returns.
Sometimes courts will award alimony in the form of a single lump sum payment. This is done in instances where the court can accurately project the total future monthly income of the recipient spouse. Judges are hesitant to award lump sum payments because they can often have severe tax consequences for the recipient party.
Duration of Alimony Payments
The judge may order alimony payments to be made for a specific amount of time, such as a number of years or months. Alimony payments may also be terminated for the following reasons:
- The recipient party has remarried
- Either party is deceased
- A date of payment termination has been recorded in the separation agreement between spouses
Certain events may also lead to a modification of the support payment schedule. Modifications occur when the earning capabilities of each party have become more equal. Some of these events include:
- The paying party has become unemployed or retired
- The recipient spouse has secured a considerable increase in earnings
- The recipient spouse has become cohabitated with another person romantically. The court will then determine whether the new living arrangement provides a financial advantage or if it functions like a marriage
Payment Records
Most courts do not specifically require a detailed accounting of the amount of alimony payments made. However, whether you are receiving or paying spousal support, it is in your best interest to maintain good records of the amounts distributed. Since parties are already involved in litigation, further disputes may occur and so it is best to be prepared.
Points to Keep in Mind
If you believe that you may be in a situation involving alimony payments, whether as a paying or receiving party, be sure to consider the following points:
- Keep detailed records of financial statements from before, during, and after separation
- Remember that the main goal of alimony payments is to ensure the financial stability and independence of each party. If it appears that the parties are already financially independent (such as in a short marriage), alimony may not be awarded
- If alimony will be awarded, be aware of the different types available, i.e., rehabilitative, reimbursement, etc.
- Terms of alimony payment may be specifically determined in legal separation agreements