What is Spousal Support?

Understanding Spousal Support or Alimony

One frequently asked question is, “What is spousal support?” Among other questions are, whether you have to pay it and the reasons. Spousal support, which used to be referred to as alimony, is financial support for your spouse during or after a divorce. Several years ago, most states changed the term “alimony” to “spousal support”—since both men and women can request it.

Why Do People Pay Spousal Support?

The courts order one spouse to pay the other for a variety of reasons, including:

• Compensation for sacrifices made during the marriage, such as putting one’s career on hold to further the career of the other spouse
• Financial need post-divorce
• Maintaining a standard of living
• Fault (in a few states)
• Length of the marriage

Spousal Support Laws Differ by State

Each state has its own spousal support laws. While many laws are the same, others differ. Some state-specific examples of spousal support laws include:

• Missouri is phasing out permanent alimony in favor of temporary or short-term alimony.
• Florida orders alimony based partially on the length of the marriage.
• Virginia and many other states take into consideration the mental and physical condition of the parties.

Spousal Support and Taxes

In the United States, the tax implications of spousal support have changed significantly due to the Tax Cuts and Jobs Act (TCJA) enacted in 2017. For divorces finalized prior to Jan. 1, 2019, alimony payments are tax-deductible for the payer and taxable income for the recipient. For divorces finalized on or after Jan. 1, 2019, alimony is no longer tax-deductible for the payer, nor is it considered taxable income for the recipient.

Who is Eligible for Spousal Support or Alimony?

In a divorce case, both spouses can ask for alimony. However, the requesting spouse must meet their state’s guidelines, which often includes the financial status of each party, contributions to the marriage, the mental and physical health of the parties, the future earning capacity of each party, and asset division during the divorce.

Classifications of Spousal Support or Alimony

Depending on your state, the court may have several types of spousal support to choose from, including:

• Temporary alimony: Available in most states and usually ordered during the pendency of the divorce. The court may convert it to another form of alimony or may terminate alimony once the divorce is final.
• Bridge-the-gap alimony: A form of alimony offered to help a spouse transition from being married to being a single person. It is generally short-term.
• Rehabilitative alimony: This type of spousal support helps a lower-earning spouse become financially self-sufficient through education, career training or career advancement. This type is generally modified as soon as the payer has proof that the receiver is financially independent.
• Durational alimony: Financial assistance for spouses for a specific period of time.
• Permanent alimony: Many states have eliminated permanent alimony. However, if your state still offers it, it does not necessarily mean that it is for life. Instead, it does not have an end date.
• Lump sum alimony: Available in most states. In lieu of any of the other forms of alimony, a spouse can offer to pay alimony in one lump sum, often via an asset the receiving spouse wants.

What Factors Determine the Amount of Spousal Support or Alimony After a Divorce?

Courts use many factors to determine alimony. However, some states may not consider all the factors listed below.

• The duration of the marriage
• The financial resources and earning capacity of the parties
• Standard of living during the marriage
• Age and health of the parties
• Contributions to the marriage
• Educational needs of the parties
• Employment potential and future earning capacity
• Child custody arrangements
• Fault (where applicable)
• Financial misconduct
• Property division
• The ability to pay spousal support

Can I Change or Modify a Spousal Support Order?

Yes, you can modify a spousal support order. However, in most states, you will have to show a significant change in circumstances. Depending on your circumstances, spousal support payments could change or completely stop. An experienced attorney can guide you through the process to determine whether the change in circumstances is allowed by law in your state.

Why Work With Cordell & Cordell

During divorce proceedings, you should work with an experienced attorney, especially when either party is requesting spousal support. The divorce lawyers at Cordell & Cordell have the experience needed to help protect your rights.