Alimony is provided to the spouse who is financially disadvantaged. There are three types of alimony: (1) periodic alimony; (2) lump-sum alimony; and (3) rehabilitative alimony.
Periodic Alimony:
Periodic alimony refers to the court’s order for one spouse (typically the husband) to pay a set amount, such as $2,000 per month, to the other spouse (typically the wife) until her death or remarriage.
- Duration: Periodic alimony is indefinite.
- Modification: It ends automatically if the recipient dies or remarries, and may also be terminated if they cohabit with someone of the opposite sex. It can be increased, decreased, or terminated due to unforeseen significant changes in circumstances.
- Tax Consequences: Periodic alimony is deductible for the payer and taxable for the recipient.
Lump-Sum Alimony:
Lump-sum alimony is useful when complete severance of ties is needed. It involves a one-time payment, such as $50,000, paid in installments (e.g., $10,000 per month for 5 months).
- Duration: Lump-sum alimony is paid over a specified period or in a single payment.
- Modification: Lump-sum alimony is not modifiable and is treated as a contractual right.
- Tax Consequences: Lump-sum alimony may or may not be deductible by the payer or taxable for the recipient, depending on whether the payment is explicitly labeled as alimony or part of a settlement agreement.
Rehabilitative Alimony:
Rehabilitative alimony is often the most favored type. It is designed to support the spouse while they become self-sufficient. For example, a court may order the husband to pay $1,000 per month for 36 months to the wife.
- Duration: Rehabilitative alimony lasts for a specific period.
- Modification: It ends if the recipient dies or remarries and may be terminated upon cohabitation with someone of the opposite sex. It can be adjusted if the recipient’s rehabilitation efforts have failed despite reasonable efforts.
- Tax Consequences: It is deductible by the payer and taxable for the recipient.
- Purpose: This alimony aims to help the disadvantaged spouse regain their earning capacity, particularly in cases where they sacrificed their career for the marriage.
Factors for Determining Alimony:
The court will consider the following factors when determining alimony:
- Financial resources and earning potential of the spouse requesting support, including property division and child support.
- The couple’s standard of living during the marriage.
- Time needed for the disadvantaged spouse to find employment or complete necessary education or training.
- The ages and health conditions of both spouses.
- The balance between the recipient’s needs and the payer’s ability to pay.
- The physical condition of each spouse, including disabilities or chronic illnesses.
Considerations for Awarding Alimony:
The court’s primary considerations are the needs of the disadvantaged spouse and the other spouse’s ability to pay.
While fault may be considered in some cases, it generally does not affect property division unless one spouse dissipated marital assets.
Wage assignment may be imposed to ensure alimony payments are made.
Modification:
Modifications typically require proof of significant changes in circumstances, such as death, remarriage, cohabitation, or retirement (if reasonable).
Alimony Pendente Lite:
This special form of alimony is intended to help the disadvantaged spouse cover the costs of divorce proceedings. It ends once the divorce is finalized and is not affected by cohabitation.
Changes to Alimony Pendente Lite:
When the couple’s combined monthly income exceeds $30,000, courts use a formula to calculate alimony, considering the duration of the marriage and whether there are minor children involved. The formula calculates alimony based on income differences and spousal support needs.
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