If you’ve been a stay-at-home parent or the lower earner in your marriage, then you may be counting on spousal support (maintenance or alimony) to provide for a portion of your living expenses after divorce. But how much should you ask for? And for how long? What can you expect in terms of financial support while the divorce is pending?

For many of my clients, this is a big question and a big budget line item. So, it becomes an important part of the financial picture for both sides.

Most states have a calculation for child support, but few have one for spousal support. That can create a lot of anxiety, angst, and conflict for people trying to negotiate a divorce settlement. Typically, the higher-earning party pays support to the lower-earning party in order to create some equity in their lifestyles. However, judges are left primarily to their own discretion to make these decisions because state laws differ and most have no formal calculation to follow.

That’s one of many reasons I always recommend my clients work with a family law professional that is familiar with the local courts. That attorney will know how the magistrates and judges typically rule and that gives you a good starting point.

Types of Spousal Support

Before we dive into how the amount of support can be figured, let’s review the types of support you might hear mentioned during your divorce process.

• Temporary Support (or pendente lite): This is spousal support paid/received during a separation or while the divorce is being negotiated and settled. It is NOT necessarily the amount that will be awarded in the final decree. If your partner is not paying the bills or otherwise withholding the funds you need to live, you can ask the court for relief in the form of temporary support. This involves filing forms with the court and a meeting with a magistrate or judge to get an official order.
• Rehabilitative Support: The purpose of rehabilitative support is to provide you with financial assistance while you find employment or get additional training to go back to work. It is typically paid for just a few years.
• Permanent Support: Permanent doesn’t mean forever, it simply differentiates temporary support from the final order in your divorce decree. This could be the same amount you received as temporary support or it could be more or less. Permanent support is typically paid monthly for a certain number of years.
• Lump-Sum Support: Rather than a monthly payment, some divorcing people decide that one payment of a lump sum is preferred over an ongoing monthly payment.

The Elusive Spousal Support Number

If there’s no formula and judges have leeway to make their own rulings, how the heck do you know how much to ask for or expect to receive? That’s a great question! And for many of my clients who have been stay-at-home-parents or lower earners, that’s an important number for them to plan their post-divorce life.

If you’ve done your homework and are working with an attorney who knows the local court, they may be able to give a range of spousal support based on prior cases they’ve worked through with those magistrates and judges.

Note for 2019: In January of this year, laws changed in terms of how support is treated from a tax standpoint for divorces finalized on or after 1/1/2019. Spousal support is no longer deductible for the payor or considered taxable income for the payee. That means that courts are re-adjusting how they determine award amounts. In general, the trend is to award lower amounts, but don’t panic because it evens out. If you are in the 20% tax bracket, then getting $1,000/mo and paying tax on it is the same as getting $800/mo and not paying tax. Make sense?

There is usually a list of factors that are considered when determining both the amount and duration of spousal support and they include:

• Recipient spouse’s need
• Length of the marriage
• Payor spouse’s ability to pay
• Number and ages of children
• Previous marital lifestyle
• Age and health of both spouses
• Fault

Notice the 3 factors in the above list that are in bold italics. These are the areas where you have the ability to make an argument that may increase the amount of support you receive or decrease the support you pay. And they all involve knowing your numbers and having accurate financial disclosures.

PRO TIP: If you’d rather eat a bowl of spiders than do math, I get it. Check out my Ditch Your Divorce Fears Financial Planner. These are the tools, tips, and worksheets I use with clients every day to help them take charge of their financial lives. Whether you’re preparing for divorce, right in the thick of settlement negotiations, or just want to get a handle on your finances, this Starter Pack will put you on the path to success.

Recipient Spouse’s Need

Need is really just the difference between income and expenses. Lower income and higher expenses = increased need.

But “need” can be interpreted very differently. One person might say their spouse only “needs” a one-bedroom apartment and $300 a month for groceries. That spouse might argue that they “need” a 2,500 square foot house and $1,000 a month for groceries and dining out. So who wins that argument?

Another good question. The key here is to have fully documented your marital lifestyle to demonstrate what was typical when you lived together. If together you spent $800/month on groceries and dining out, then saying you need $1,000/month as a single person is probably unrealistic. But if your marital lifestyle was $3,000/month, then that $1,000 is actually a reduction and more reasonable.

If you’re the one making an argument to receive spousal support, your goal should be to document your marital lifestyle (see below) and then demonstrate that your post-divorce budget is based on 50% (or less) of that. And be prepared to back up any estimated expenses with documentation (receipts, bank statements, real estate or rental listing, insurance estimates, and so on).

When it comes to income, be prepared for the other side (and the court) to assume you will make every attempt to become self-supporting. More income equals less need, so that will be their plan of attack. Be prepared to argue how your age, health, limitations, outdated skills, level of responsibility for children or parents, etc… might limit your ability to earn income.

Payor Spouse’s Ability to Pay

So, “ability to pay” is also the difference between income and expenses. More income and lower expenses = increased ability to pay.

You want to ensure that your spouse’s total gross income is documented properly and that the expenses they are claiming on their financial disclosure are also reasonable. If your spouse is self-employed, runs a cash-based business, or you have reason to believe they are under-reporting income, it may be worth it to ask for additional tax or business records or even bring in a specialist like a forensic accountant.

If your divorce isn’t amicable, you’ll want to be really careful to watch for reductions in income or disappearing assets. One dirty divorce trick is a previously high-earning spouse to all of a sudden start reporting significantly less income. Be sure to use past tax returns and other financial documents to show that spouse’s earning capacity. Also, keep an eye out for withdrawals from investment or retirement accounts. Those are marital assets that can generate income for your spouse.

Previous Marital Lifestyle

If you haven’t already done it, it’s time to get friendly with all your numbers. Dust off your calculator, grab a cup of courage and do this work. It will make a big difference in how confidently you approach negotiations and ask for what you need and deserve.

Lifestyle analysis simply means looking back at how money came in and went out while you were married.

Gather 6-12 months of checking, savings, and credit card statements and break your spending into categories. It doesn’t matter if you look at your expenses on a monthly or annual basis as long as you are consistent.

Check to see if your bank or credit card company provides reporting that will categorize charges for you. Your work may already be done for you!

Read more here about how numbers are your best friends in divorce.

Review all your expenses paying particular attention to those that don’t occur regularly (you don’t want to forget them) and calculate a monthly average for each line item. Voila! You’ve done it. You’ve documented your marital lifestyle and set yourself up for developing accurate financial disclosures and a post-divorce financial plan you can live with.

If you’d rather eat a bowl of spiders than do math, I get it. Check out my Ditch Your Divorce Fears Financial Planner. These are the tools, tips, and worksheets I use with clients every day to help them take charge of their financial lives. Whether you’re preparing for divorce, right in the thick of settlement negotiations, or just want to get a handle on your finances, this Starter Pack will put you on the path to success.

But I Need a Number!

There still may be a way for you to estimate some sort of number for your spousal support payment. Maritallaws.com offers an online alimony calculator that estimates a range based on lows and highs from different states. You can give a try by putting in your own numbers.

Let’s look at an example:

The paying spouse makes $150,000/year and pays 25% in taxes.

The supported spouse makes $30,000/year and pays 15% taxes.

	Average	Low	High
Spousal Support/Mo	$3,041	$2,325	$4,166
Length of Payment	155 months	84 months	240 months

 

Again, I want to stress that only a family law attorney familiar with your local courts will be able to give you a realistic idea of how a spousal support amount is typically arrived at in your state or municipality. As for how long your spousal support will last? Of course, it varies by state and by judge, but the general rule of thumb is one-third to one-half the length of the marriage. Spousal support may not be a consideration for very short term marriages.

Need More Help?

I get it. It’s confusing. And spousal support is only one part of your marital settlement agreement and your post-divorce financial planning. Let’s put our heads together and make sure you make the best decisions you can. You only get one chance to get your divorce agreement right. Let’s talk about how to make it easier for you. Just schedule a complimentary consultation and we’ll have a no-pressure chat.

 

Schedule Your Complimentary Consultation Now

 

Wishing you strength and wisdom,