Alimony
One of the most frequently asked questions involves how alimony works.
What is alimony?
Alimony is money one spouse pays the other to cover living costs and expenses while separated and after the divorce is final. Traditionally, alimony was paid to women in monthly installments and was permanent (or until the wife remarried). Now, alimony is more likely to be paid over a specific time or in a lump sum.
What are the different types of Alimony?
- Permanent Alimony — Periodic payments for an unlimited time. The duty to continue making the payments automatically terminates at either party’s death or the payee’s remarriage. It can be modified based on a material change in circumstances. If entitled to periodic alimony, the spouse is entitled to an amount commensurate with the standard of living to which the spouse had become accustomed while being measured against the ability to pay.
- Lump Sum — A fixed amount used to bring closure to the economic relationship between the spouses. The Courts will look at various factors in awarding a lump sum payment, including whether or not the spouse substantially contributed to wealth accumulation by working inside or outside the home. Lump sum alimony cannot be modified based on material changes in circumstance. Instead, lump sum alimony may only be modified in cases of fraud.
- Rehabilitative Alimony — A short-term payment during a specified job training period. Rehabilitative alimony has a fixed ending date. Rehabilitative alimony cannot be modified due to material changes in circumstances. However, rehabilitative alimony may be extended and modified to permanent alimony based upon a material change in circumstance.
- Reimbursement Alimony — An award to a spouse who supported the other spouse through school and whose contribution cannot be recognized by the division of the marital assets. Payment is lump sum in nature and is not modifiable. Types of reimbursement include direct educational costs.
How is alimony determined?
The trial judge has discretion regarding the amount of alimony to award and the payment time. The factors considered are known as the Armstrong Factors. These factors are:
- Income and expenses
- Health and earning capacity;
- Needs of each party;
- Obligations and assets of each party;
- Length of marriage;
- Minor children and child care;
- Ages;
- Standard of living during the marriage;
- Tax consequences;
- Fault or misconduct;
- Dissipation of assets by either party; and,
- Any other equitable factors.
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