Spousal Support - What You Need to Know
Did you know that a judge decides the matter of spousal support in only about 5% of divorce cases?
In the vast majority of divorces, spouses come to an agreement about spousal support and settle out of court.
They come to an agreement, with or without legal advice or representation, about who pays whom, how much and for how long.
But just because they come to an agreement DOES NOT mean it's easy. It can be one of the most contentious parts of a divorce.
Here's what you need to know about spousal support
Definition and Purpose
How it's calculated
Duration
Can it be modified or terminated?
What is a spousal support buyout?
How working with a Divorce Coach can help
Definition
Financial assistance provided by one spouse to another after or during a separation or divorce.
Purpose
To help the lower-earning or non-earning spouse maintain a similar standard of living to what was experienced during the marriage.
How it's calculated
Depending on the laws of the state you live in, it's either calculated in a more black and white way by a calculator, or by various factors and guidelines.
Some of the states that use an alimony calculator include New York, Colorado, Arizona and Illinois. It's a formula where you input data (incomes, length of marriage in years, etc.) and out comes a number.
Other states, like Oregon, Washington and California, to name a few, do not use a calculator and instead consider multiple factors, including
Length of the marriage
Contributions to the marriage - financial and non-financial
Financial needs and resources of spouses
Ages and health of spouses
Other factors
Duration
Duration of spousal support refers to how long one spouse will pay the other spouse. It generally breaks down into 3 categories - temporary, transitional or long-term..
Temporary spousal support may be important when the spouses have separated, are living in 2 households and one spouse has means while the other does not.
It's intended to help the non-earning or lower-earning spouse make ends meet while the couple is in the legal process of divorce, until they have a settlement agreement or judgement.
Transitional or rehabilitative spousal support is often agreed upon or ordered when one spouse needs time or training to become financially independent.
Long-term (misleadingly called permanent) spousal support is often agreed upon or ordered if the non or lower earning spouse has limited ability or time to become financially independent.
Can it be modified or terminated?
Spousal support can be modified or terminated in some circumstances.
The most common circumstances when spousal support gets modified or terminated include:
If one spouse files for a motion to modify it based on circumstances based on changes in income
If the spouse receiving spousal support re-marries
If the spouse paying spousal support is unable to work
If either spouse dies
What is a spousal support buyout?
It's a one-time payment instead of ongoing monthly payments.
Depending on where you live, you may be able to consider a spousal support buyout.
Some reasons you may want to consider a lump-sum buyout include:
If you don't have kids and want a clean resolution with no need for ongoing ties
For greater financial flexibility - to buy a house or pay for college sooner rather than later
For tax benefits
To reduce tension
How working with a Divorce Coach can help
Understand how spousal support is determined in your area
Develop a post-separation budget to be a better negotiator
Develop a settlement proposal for the type, amount and duration of spousal support based on your priorities, goals and circumstances
Make the most of your time with other divorce professionals such as Attorneys, Mediators and Financial Advisors
I hope you found this information valuable.
Please schedule a free consultation to see if coaching would be a good fit for you.
