In divorce, a common question is, “what is the alimony formula”. There is actually no definite divorce alimony formula. This is in stark contrast to child support, which is decided based on a specific formula in each state. Benefits are based on factors and those factors are decided through divorce negotiations or by a divorce judge. However, there is no alimony formula available for your divorce attorney or you to determine in advance what benefits will be paid in your case.
What does a divorce court look at to determine alimony? The problems vary from state to state. However, there are also many benefits factors that are common from state to state. So while there isn’t a specific benefits formula for you to rely on, there are benefits factors you can look to to help you determine what benefits may be in your case.
In a divorce, some alimony factors that a judge may look at include the following. The first is the length of your marriage. If the parties have been married for one year, the court’s attitude towards alimony requests will be very different than if the parties had been married for twenty years. Because the length of marriage varies greatly in all divorces, it is not possible to include this factor in the alimony forum to determine the amount of alimony.
Another factor that affects the provision of benefits is employment status. Obviously, if a spouse seeking benefits has been unemployed or underemployed for several years to care for small children, a home, or a spouse, it is a factor that will work against the spouse if he or she seeks benefits. On the other hand, if the spouse has the ability to find a job that is more than adequate to meet his or her needs, the court may think a little differently about granting that party alimony. Other factors that are considered closely related to this factor include education level, work experience, age of children in the household, and work history.
The main factor that can affect the provision of benefits is the amount of property that will be maintained or divided by the parties. If the spouse seeking alimony is already a stay-at-home parent, but will have significant assets after the divorce or have separate assets, such as a trust fund, the court’s attitude toward granting alimony will be affected. Courts will certainly see alimony requests in these circumstances much different from requests made by individuals who do not receive assets in divorce or who do not own separate property.
The health of the party seeking alimony is a major factor that can influence the court’s decision to grant alimony. If a spouse seeking alimony has a debilitating physical condition that affects whether or how much they can work, the court does not want to impoverish the party after the divorce and the court will be more likely to use the alimony to meet at least the basic necessities of life.
Another factor that the divorce court and the parties must consider, is the taxability of the alimony payment. In most cases, in the absence of specific provisions to the contrary, spousal support payments are taxed to the recipient and tax-deductible to the payer. The tax benefits gained by spreading economic wealth in this way can be significant and should be discussed in depth with your divorce attorney.
One issue that courts don’t always consider, but should discuss with your divorce attorney, is that alimony payments, in general, cannot be released in bankruptcy. If there is a possibility that the party paying the alimony will file for bankruptcy, divorce attorneys will negotiate very hard on both sides to maximize the final benefit to their client in the divorce.
Thus it should be clear that in a divorce, there will be no easy alimony forum, no matter which state you live in. It is impossible to plug these and other factors into a mathematical equation to arrive at the “correct” allowance formula. Divorce courts, or divorce attorneys need to review how these varied and different factors affect both parties in a divorce and then arrive at a solution that covers all divorce issues, including property and alimony settlements. They can’t just come up with an allowance formula that will work for everyone.
