What is Alimony and How Long Does it Last?
For many women facing divorce, their top fears revolve around their children (if they have them) and how the situation might affect them. And, of course, the money and finances. Drilling down more, women often ask us about the differences between alimony, spousal support, and spousal maintenance. These are interchangeable terms depending on the state in which you live. However, all three terms refer to ongoing financial support payments from one spouse to the other.
Whether the court orders you to pay alimony or you expect to receive it, this article will help you understand what alimony is and how long it typically lasts during a divorce.
What is Alimony?
Alimony is financial support that one spouse pays to the other. Its purpose is to address economic disparities that can arise after a marriage ends—especially when one spouse earns significantly more, has been financially dependent, or has contributed through unpaid work like raising children and managing the household.
Alimony can be …
- “Temporary” support during the divorce process
- “Rehabilitative” support so that a former spouse can obtain education, training, or work experience and become self-sufficient
- “Permanent” support to a former spouse that stops at their remarriage or the death of either spouse
Alimony has two components: the payment amount, and the duration of the payments.
Each state has its own specific divorce laws governing these components and their application.
SAS Tip: This is why it’s important to find a good divorce lawyer in your state for an educational consultation. Among your most critical questions is asking what your best- and worst-case scenarios are for alimony — and how long the payments would last. Consulting further with a certified divorce financial analyst (CDFA) might help you negotiate alimony in savvier ways for your future. (See the conclusion of this article to avoid divorce regret and for more on structuring alimony.)
But first, find out what the divorce laws in your state say about your circumstances.
Factors Determining Amount and Duration
Courts may consider the following factors when determining the amount and duration of alimony:
- Need: Does the recipient have enough money to live on apart from their earning potential and share of marital or separate property?
- Ability to Pay: Does the payor have enough income to cover the alimony and still maintain a lifestyle similar to what they had during the marriage?
- Duration of the Marriage: Courts typically use the length of the marriage to determine how long alimony payments should last. Longer marriages can lead to longer or even indefinite obligations. Read about the average marriage length in the USA here.
- Standard of Living: The lifestyle established during the marriage can influence alimony determination, ensuring that the lower-income earner can maintain a similar standard of living post-divorce.
- Income and Earning Capacity: Each spouse’s income and earning potential play a crucial role. States consider factors like education, skills, employment history, and future earning capacity.
- Contributions to the Marriage: Non-financial contributions, such as homemaking and raising children, are also considered in many states. Consider reading more on whether stay-at-home moms get alimony.
- Resources and Assets: Will the property allocated to the lower-income earning spouse in the divorce (bank accounts, investment accounts, rental property income) generate income to meet their needs? Does either spouse currently have a trust or inheritance?
Additional considerations may include child custody, fault, and the age and health of the spouses.
As mentioned, alimony laws vary from state to state. Texas has restrictive laws and rarely awards alimony. Florida, Connecticut, New Jersey, North Carolina, Oregon, Vermont, and West Virginia can award permanent alimony. You can learn more about basic alimony laws in your state by visiting Womenslaw.org.
Alimony as a Bridge
Changes in laws and society over the past decades have brought about significant adjustments to alimony laws.
Alimony is currently viewed as a “bridge” to transition the lower-income earner to become self-sufficient. How long alimony will last depends on their state and the specifics of each situation: how long has the recipient been out of the workforce, their age, health, etc.
States differ in whether alimony is calculated by a formula or left to the discretion of a judge. Formulaic approaches provide more predictability, while discretionary systems allow for case-specific considerations.
Consider reading “What’s the Difference between a Divorce Decree and a Divorce Certificate.”
Two major concerns for recipients of alimony, which are often overlooked, is whether they have wage-earning income with benefits like health insurance because the cost of obtaining adequate health care can be $500+/month. The other is securing the obligation by a life insurance policy or another method because alimony stops upon the death of the payor.
Alimony is typically modifiable unless there is agreement for it to be non-modifiable.
Some states use a hybrid method that allows the duration of payments to be non-modifiable and the amounts of the payments to be modifiable. Retirement impacts alimony if it is modifiable. Some states have laws limiting the requirement of alimony when the payor is at full retirement age.
Alimony can terminate when the recipient remarries or enters a civil union. In some states, termination of alimony can also occur when the recipient cohabitates with an intimate partner.
Alimony is a domestic support obligation that cannot be discharged in bankruptcy. This is not state law dependent, because it is federal law.
Structuring Alimony
Unless alimony is determined by a judge, it is typically negotiable, allowing both parties the opportunity to structure it in a way that best fits their financial situations
- The most common way to structure alimony is monthly payments over the obligation duration. It is important to secure the total obligation with a life insurance policy.
- Another way to structure alimony is called a “buyout.” Having sufficient liquid assets in the marital estate allows for a lump sum payout that the recipient receives satisfying the full obligation. This lump sum can also be offset by another asset.
- Alimony can also be structured in a “step down” approach where there is a reduction in the payment amount over time. This allows the recipient income while working on advancement goals and requirements for employment and for the payor to have a benefit of payment decrease over time.
Conclusion
Alimony is an emotionally charged topic, and often the costliest issue to resolve. The payor doesn’t want to financially support the Ex post-divorce, and the recipient feels that the alimony they get is not enough to make ends meet.
Whether women must pay alimony or are the recipients, they often ask if this issue can be resolved without lengthy and costly litigation.
Yes, is our divorce advice, and the approach should align with what is most important to them – meeting their monthly expenses. Cash-flow analysis (an integral part of a good certified divorce financial analyst’s work) is key in helping determine the payor’s ability to pay and the recipient’s reasonable needs. The data can help parties negotiate alimony based on actual circumstances and facts versus emotions.
If you are thinking about divorce, or in the midst of it, we urge you to care for yourself emotionally but to also stay focused on the best business transaction for your future and best life after divorce.
NOTES
Suzanne Chambers-Yates is a Certified Divorce Financial Analyst and Divorce Mediator. She provides in-depth financial analysis and insights to individuals or couples relating to divorce. You are invited to schedule a meaningful consultation with her to learn more. Visit Suzanne’s website at: www.divorceconcierge.online
Since 2012, SAS for Women has been entirely dedicated to the unexpected challenges women face while considering a divorce and navigating the divorce experience and its confusing afterward.
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*We support same-sex marriages. For the sake of simplicity in this article, however, we refer to your spouse as your “husband” or a “he.”
