After the Break-Up, Ex-Husbands Aren’t the Only Ones Making Alimony Payments
Alimony is a monthly support payment paid by one divorced spouse to the other. The payments, also referred to as spousal support or maintenance, can begin before a divorce is final. The payments are made by the higher-earning spouse so that the standard of living for both remains as close as possible to the standard of living they shared when married. Because income is the determining factor, ex-husbands are no longer the only ones making alimony payments. So if you earn substantially more than your spouse, whether you are male or female, expect to pay alimony.
HOW PAYMENTS ARE DETERMINED
In most divorces, whether litigated or reached through mediation or collaborative law, both parties usually negotiate alimony rather than leaving the decision to the judge.The amount, however, generally is arrived at based on alimony criteria established by each state. These guidelines help determine the need and extent of alimony and usually consider:
1. Duration of the marriage.
2. Earning capacity of each party.
3. Age of each spouse.
4. Each party’s physical, mental and emotional state.
5. Other income, both earned and unearned (i.e., investments, interest, and dividends).
6. Whether one spouse contributed to the education of the other in order to further that spouse’s career.
7. The homemaking contributions of a spouse.
8. The effect that being the custodial parent will have on that party’s earning power.
Fault in the marital breakdown also could be considered in some states. Depending on the situation, when there is a determination that one spouse was more responsible for the demise of the marriage than the other, any associated alimony could be substantially increased, reduced or even nullified. This is not a consideration in states that recognize no-fault divorces, where you do not have to show a reason (i.e., fault) to get divorced. The divorce court judge, however, may consider any other economic circumstances of either spouse that he or she determines to be just or proper in awarding alimony. And as a general rule, alimony amount can be modified, either up or down, by demonstrating a material change of circumstance.
TYPES OF ALIMONY
Once the amount of alimony is decided upon, then the parties must agree on how it will be paid. Common types of alimony awards are:
1. Permanent: Despite the name, these payments are not unending. They are made until either the death of the payer or the remarriage of the recipient. Other conditions also could determine the end of permanent alimony payments, for example, a cohabitation” clause that calls for the end of alimony when the recipient lives with another person or when the recipient is no longer has to provide full-time parenting duties to minor children.
2. Temporary: This type of alimony lasts for a specific period, usually one or two years. Temporary alimony typically is awarded when the circumstances of both parties are almost equal but, because of special circumstances, one party needs short-term financial assistance.
3. Lump sum: Rather than being spread over periodic payments, this type of alimony is one large amount. As with all types of alimony, a lump-sum payment is taxable to the recipient. If you are offered such alimony, before agreeing to the arrangement, consult with your financial and tax advisors to determine the consequences of this type of payment.
4. Rehabilitative: This type of spousal support is awarded where the recipient is younger or able to eventually start or return to work and become financially self-sufficient. Rehabilitative alimony may include payments for the education necessary to enable the recipient to become self-supporting.
REMEDIES FOR NONPAYMENT
If you are awarded alimony, but your spouse refuses to pay, take immediate legal action to enforce the court-mandated payments.
You can seek a contempt” proceeding or an earnings assignment order.” When properly filed, these orders can be enforced to ensure that the recipient spouse obtains regular payments.
Some state courts have held that post-judgment interest is mandatory on unpaid alimony. In these cases, when installment alimony payments are required, interest accrues on each unpaid installment from the date it is due rather than from the date of the judgment.
A court may even jail a reluctant payer.
You also can use collection procedures that are available to all other creditors, meaning you could report the unpaid alimony to a collection agency.
