Alimony is a common sticking point between divorcing spouses. There is usually disagreement with regard to the amount of money that one spouse should pay the other. Sometimes, the two parties will disagree on whether spousal support should be paid at all.
In a best-case scenario, the parties would be able to work out their differences at the negotiating table. Doing so would allow them to stay out of divorce court. If the parties are unable to reach an agreement regarding alimony, and all non-court options have been exhausted, they may have little choice but to let a judge settle the matter for them.
The article that follows explains how a judge decides whether spousal support is warranted, and if it is, how much is to be paid by the supporting spouse. The judge’s decisions may seem unfair to one or both parties. It’s important to realize that his decisions are heavily influenced by the financial information provided by the couple.
Establishing Financial Need And Standard Of Living
Divorce courts look at three overriding factors when addressing issues concerning spousal support. First, they consider both parties’ financial needs. Each party comes to the table with a list of expenses, such as mortgage payments, monthly utilities, car payments, and so forth. The judge will try to ensure that both spouses are left with enough money to pay their monthly bills.
The second factor is earning capacity. The court will try to determine how much money both parties can reasonably be expected to earn given their education and experience. Any deficit between their earning capacity and expenses is taken into consideration. An individual’s earning capacity may differ dramatically from his or her current income. We’ll look a closer look at this issue in the following section.
The third factor is the supporting spouse’s ability to financially support the other party. After the court identifies one party as having a higher earning capacity than the other, its attention focuses on how much that individual can afford to pay the other party.
There are, of course, many other factors that are taken into account. For example, judges will consider the length of the couple’s marriage, each spouse’s health, and whether one party paid for the other’s education or vocational training. But financial need, earning capacity, and ability to pay are the prevailing concerns.
When A Supporting Spouse’s Income Is Questioned
The second factor we discussed above – earning capacity – is more complicated than it seems. The court must determine whether both parties are earning the incomes they should be able to earn given their marketable skills. If they are not, the judge is likely to ignore their present incomes.
For example, suppose one spouse has a medical degree and is a practicing physician, a job that pays $150,000 per year. However, he resigns from his position and take a part-time job as a coffee house barista. As a result, he now earns minimum wage. The divorce court judge, in calculating the amount of spousal support the former physician should pay his wife, may decide to disregard his barista wages. Instead, the judge might base the figure on his previous income ($150,000 per year).
The important point is that the judge has a considerable amount of latitude when deciding matters related to a couple’s divorce settlement. He will often use his own discretion, exposing both spouses to unpredictable results.
How Long Is Spousal Support Paid?
Supporting spouses are understandably concerned about the length of time they must pay alimony. Unfortunately, there’s no standard rule that dictates the duration. In many cases, courts have ruled that spousal maintenance payments must continue until either party has died.
Judges take into consideration numerous details pertaining to the couple’s marriage and their financial circumstances. For example, the judge will bear in mind the length of time the couple was married. He’ll also consider whether either party is going to inherit a sizable portfolio of assets down the road. The judge may also base his decisions on one or both parties’ debts and assets acquired outside the marriage.
These factors help the judge to decide how long the supporting spouse should pay alimony. Having said that, the judge may decide to leave the duration of spousal maintenance undefined. The supporting spouse would be responsible for proving that the maintenance payments are no longer necessary.
Alimony is a complex issue in divorce settlement negotiations. It’s advisable to speak with an experienced divorce attorney regarding how to best protect your rights while avoiding costly litigation.