Alimony is financial support provided to a spouse who is economically disadvantaged. There are three main categories: periodic, lump sum, and rehabilitative alimony.
Periodic Alimony
- Definition: Payments are made regularly, such as $2,000 monthly, until the recipient’s death or remarriage.
- Duration: This type of alimony has an indefinite timeline.
- Modification: Payments end automatically upon the recipient’s death or remarriage, and may cease if the recipient cohabitates with someone of the opposite sex. Adjustments to the amount can be made in cases of significant, unforeseeable changes in circumstances.
- Tax Implications: These payments are tax-deductible for the payer and taxable for the recipient.
Lump-Sum Alimony
- Definition: A fixed amount, such as $50,000, is paid in full or in installments, like $10,000 monthly for five months.
- Duration: This type of alimony is for a specific period and cannot be modified.
- Modification: Lump-sum alimony functions as a contractual agreement and is not subject to change.
- Tax Implications: Whether payments are deductible depends on how they are identified in the agreement. If classified as alimony, they are likely deductible.
Rehabilitative Alimony
- Definition: Temporary support, such as $1,000 monthly for three years, aimed at helping the recipient regain financial independence.
- Duration: Payments are made for a set period.
- Modification: Payments end upon death, remarriage, or cohabitation of the recipient. Changes may occur if the recipient demonstrates reasonable efforts toward rehabilitation but remains unsuccessful.
- Tax Implications: These payments are deductible for the payer and taxable for the recipient.
- Purpose: To help the disadvantaged spouse reestablish earning capacity, especially if they gave up a career during the marriage.
Factors for Determining Alimony
Courts consider multiple aspects, including:
- The financial resources and earning potential of the spouse seeking support.
- The couple’s standard of living during the marriage.
- The time required for the disadvantaged spouse to gain employment or complete necessary training.
- The ages and health conditions of both parties.
- The balance between the disadvantaged spouse’s needs and the other spouse’s ability to pay.
- Physical conditions such as disability or chronic illness.
Considerations for Awarding Alimony
- The court evaluates the need of the recipient spouse and the other spouse’s ability to pay.
- Fault in the marriage may be a factor in awarding alimony but is typically excluded in property division unless marital assets were misused.
- Wage assignments can be implemented to ensure compliance with payment requirements.
- Modifications to alimony are possible with evidence of significant and ongoing changes, such as death, remarriage, cohabitation, or retirement.
Alimony Pendente Lite
- This temporary support assists the disadvantaged spouse with costs associated with divorce proceedings. It ends when the divorce is finalized and is not affected by cohabitation.
- Changes apply if the couple’s combined net monthly income exceeds $30,000, following a formula that considers income differences and the marriage’s duration.
For legal assistance, contact Divorce Lawyer R. Badet, an experienced attorney specializing in family law, including divorces, spousal support, child custody, and child support. Call (267) 277-2641 or visit www.lawyersfordivorces.net for a free consultation.