Tuesday, January 3, 2012

Maintenance (Alimony) Basics

THE MARRIAGE ZONE
IT’S THE LAW: MAINTENANCE (ALIMONY) BASICS
By Christopher C. Meyer  June 2011

In Colorado, alimony or spousal support is referred to as “maintenance”. Eligibility for maintenance is determined by a list of statutory factors such as the length of the marriage. The goal of maintenance is to place the spouse who gets it in a position where that person will eventually be able to support themselves without assistance. Another goal is to enable the receiving spouse to maintain a lifestyle similar to that enjoyed during the marriage.

The two basic components of a maintenance analysis are a spouse’s need for financial help and the other spouse’s ability to pay. Cases often involve a party with an obvious need for maintenance, but if the other party cannot afford to pay it and meet their own needs, maintenance will not be awarded. It is an unfortunate fact of life that two households cost one-third more to operate than one does. Many couples are in financial difficulty. Financial problems are a big contributing cause of divorces. If a couple is in financial difficulty, it is less likely that a divorce will include a maintenance award, however great one of the party’s need may be.

A significant issue regarding maintenance is the duration of the award. The duration of the award really depends on how long it will take the receiving party to become self-supporting. Each case turns on its own facts. Assuming that the receiving party is under 50 and is in good health and under no disabilities, a broad estimate would be that the duration of the award would not be greater than one-third the length of the marriage.

Maintenance usually ends automatically upon the death or re-marriage of the receiving party, or the death of the paying party. This must be so in order for the payment to qualify as alimony under IRS regulations. Alimony that qualifies under IRS regulations is deductible (a reduction from gross income to adjusted gross income) to the payor and is taxable income to the payee. Tax consequences of maintenance awards should be analyzed prior to entering any agreement to pay or receive it.

Some parties may be eligible for temporary maintenance. Temporary maintenance covers a party’s need for support from the time the case is filed until the final orders are entered and the case is completed. The Legislature has provided a formula for determining the presumptive amount of temporary maintenance where the parties combined yearly gross incomes are $75,000 or less. This amount is 40% of the monthly income of the higher income party, less 50% of the monthly income of the lower income party. The presumption regarding the amount of temporary maintenance can be overcome by proving that it would be unfair.

Temporary maintenance for parties whose combined gross incomes are greater than $75,000 per year is determined by the regular maintenance criteria.

Maintenance/alimony law is the same as other law. You must remember that: you may not understand it; you may not like it; and you may not think its fair; but it’s the law!

This article is for informational purposes only and does not constitute legal advice about your case.


Chris Meyer is an attorney practicing family law in El Paso County. Chris’ law practice is limited to domestic relations cases. Chris has been practicing law since 1977. He is a former prosecutor and is licensed to practice law in Colorado, Florida, California and Wisconsin. Chris can be contacted at 719-488-9395. Chris’s website (www.cmeyerlaw.com) has additional divorce and family law information and many other articles.

0 comments: