How is Alimony Calculated?
How is Alimony Calculated?
The court will determine how much alimony will be paid per month by weighing out the "needs" of the receiving party with the "ability to pay" of the paying party. While this may seem vague in theory, in practice the court will consider the evidence and testimony of both parties while weighing out the 8 factors for determining alimony. By matching up the 8 factors below with the unique individual facts of your case, the court will come to a determination on the amount of alimony.
Factors for Calculating Alimony
When determining the amount of alimony that should be paid (if any), the court will consider the following 8 factors. If you would like to read more about the factors in detail, click here.
Standard of Living
Duration of the Marriage
Physical & Emotional Condition of the Parties
Financial Resources of Each Party
Time Needed to Obtain Employment
Contribution to the Marriage
Financial Condition of the Parties
All Other Relevant Factors
Conduct of the Parties
In addition to the eight factors, the court will also consider the parties' "conduct" toward each other. Conduct goes beyond poor treatment of each other, conduct typically comes into play in the context of adultery and cheating. In certain circumstances, adultery can lead to a total bar of alimony. Proving adultery for the purposes of eliminating alimony payments can be difficult.
How Does Alimony Affect Taxes?
Alimony used to be treated as taxable income to the recipient and a deduction to the paying party. Prior to 2017, the paying party got a tax break when paying alimony, but receiving party would have to be careful to consider the additional tax liability with collecting alimony. The passage of the 2017 Tax Cuts and Jobs Act removed those tax implications.
Things to Consider Before Asking for Alimony
There are some very important considerations to mull over before deciding whether or not you should ask for alimony. Alimony is not always in your best interest, even if you are receiving it. Below are a few items you should consider before asking for alimony.
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How much do you need to live on per month?
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Are you planning on staying single and living alone for the time being?
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How stable is your job and financial situation?
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How much can your ex realistically afford to pay?
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Are you planning on getting remarried and moving in with someone soon?
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How stable is your ex's job and financial situation?