Alimony is typically awarded to the spouse who is financially disadvantaged. There are three main types of alimony: (1) periodic alimony, (2) lump-sum alimony, and (3) rehabilitative alimony.
- Periodic Alimony:
This type involves the court ordering the paying spouse to give a set amount, such as $2,000 per month, to the other spouse until her death or remarriage.- Duration: It lasts indefinitely unless circumstances change.
- Modification: The payments end if the recipient dies or remarries. It may also terminate if the recipient cohabits with someone of the opposite sex. Periodic alimony can be altered (increased or decreased) if substantial unforeseen changes occur.
- Tax Consequences: The paying spouse can deduct it on their taxes, while the recipient must report it as taxable income.
- Lump-Sum Alimony:
This type involves a one-time payment, often made in installments. For example, a $50,000 payment might be split into five monthly installments of $10,000.- Duration: This alimony is given for a specific period and may be paid in full upfront or in payments.
- Modification: Lump-sum alimony is not subject to modification since it’s treated like a contract.
- Tax Consequences: Whether the payment is deductible by the payer and taxable for the recipient depends on how the payment is categorized—if labeled as alimony, it’s likely deductible by the payer.
- Rehabilitative Alimony:
This form is designed to help the financially disadvantaged spouse regain the ability to support themselves, often after they’ve given up their career for the marriage.- Duration: The payments are given for a specific time period.
- Modification: Rehabilitative alimony ends if the recipient dies or remarries. It may be terminated if the spouse’s rehabilitation efforts fail.
- Tax Consequences: Like periodic alimony, it is tax-deductible for the payer and taxable for the recipient.
- Purpose: The goal is to enable the disadvantaged spouse to become self-sufficient, often after being placed in a position where they have not been able to work or earn at the same level as before the marriage.
Factors Considered for Alimony
When determining the amount and type of alimony, the court evaluates several factors:
- The financial resources of the spouse requesting support, including their earning potential.
- The standard of living the couple maintained during the marriage.
- How long it will take for the disadvantaged spouse to become self-supporting, through finding a job or completing necessary education.
- The age and health of both spouses.
- A balance between the disadvantaged spouse’s needs and the paying spouse’s ability to provide support.
- The physical condition of each spouse, including any disabilities or chronic health issues.
Considerations for Awarding Alimony
The two main factors the court considers are:
- The need of the disadvantaged spouse.
- The ability of the other spouse to pay.
Fault may be taken into account when deciding alimony, although it’s typically not a factor in property division unless assets were wasted. Alimony may be enforced through wage garnishment if necessary.
Modification of Alimony
To modify alimony, there must be a significant change in circumstances, such as death, remarriage, cohabitation, or retirement if it is considered reasonable.
Alimony Pendente Lite
This form of temporary alimony is provided to assist the financially disadvantaged spouse with the costs associated with the divorce process. It ends once the divorce is finalized and is not impacted by cohabitation.
Changes to Alimony Pendente Lite
When the couple’s combined monthly income exceeds $30,000, the court uses a formula to calculate the support amount, which factors in income disparity and the presence of children who need support. The duration of the marriage is also considered when determining how long this support should last.
Divorce Lawyer R. Badet
Attorney R. Badet is a skilled divorce lawyer with experience in handling both simple and complex divorces, as well as spousal support, child support, and custody matters. He offers free consultations and works diligently to ensure the best possible outcomes for his clients. You can learn more about your rights and options on his website or by calling for a consultation.