Understanding Spousal Support: Types, Calculations, and Common Misconceptions

Spousal support is one of the most confusing (and stressful) aspects of any divorce.

It causes anxiety on both sides of the issue. The person who is responsible for making the payments is worried about their finances and the person who will potentially receive it wonders if they will get enough to live on.

The thing is…

Understanding the ins and outs of spousal support can take a lot of the stress away. And the good news is that it isn’t as complicated as you might think.

Let’s take a look:

• What Is Spousal Support?
• The Different Types of Spousal Support
• How Courts Calculate Support Amounts
• Myths That Trip People Up

What Is Spousal Support?

Put simply, spousal support (also called alimony) is money paid by one spouse to another after a divorce.

The goal is simple. Spousal support helps the lower-earning spouse maintain a reasonable standard of living while getting back on their feet.

Courts look at income disparities, length of the marriage, and each party’s earning potential among other things.

But here’s the thing most people don’t realize…

In many divorces, there is no spousal support. Courts award alimony in roughly 30-40% of divorce cases. That’s a lot smaller number than most people think.

If you’re seeking spousal support or are worried about having to pay it, consult with a qualified family lawyer in Frisco, TX, who can help you understand which family law services apply to your situation.

The key thing to remember here is that spousal support is never guaranteed. Every case is different.

The Different Types of Spousal Support

Spousal support is not a one size fits all scenario. There are different types, and it is important to understand what you can expect.

Temporary Support

As the name implies, this is support that is provided during the divorce proceedings.

Temporary support is short-term and helps the lower-earning spouse pay for their day-to-day living expenses while the divorce gets finalized.

Once the divorce is complete, temporary support ends, and some other type of support (if any) may kick in.

Rehabilitative Support

This is the most common type of spousal support these days.

The concept is simple. Rehabilitative spousal support helps a spouse become financially independent again. The money might go towards school tuition, job training, or just paying the bills while they re-establish their career.

Courts set a limit on how long the spouse can receive payments, then it is over.

Permanent Support

Permanent support is rare.

It’s only awarded in long-term marriages where one spouse gave up their career for the family. And even in those cases, courts are moving away from permanent, lifetime payments.

Judges are much more likely to award rehabilitative support because it pushes both parties to become independent.

Reimbursement Support

Did one spouse pay for the other’s education or training during the marriage?

Reimbursement support is money paid back to the supporting spouse for their investment. It is not that common but can apply in some cases.

How Courts Calculate Support Amounts

Now for the fun part. Every state has its own way of calculating alimony.

Some use formulas, while others give judges more discretion in how they calculate support. But the majority of courts consider a similar set of factors.

Here are the common ones:

• Length of the marriage
• Each spouse’s income and potential to earn money
• Standard of living that the couple had during the marriage
• The age and health of both parties
• Contributions made to the marriage (financial and non-financial)
• Child custody arrangements

In general, the longer the marriage, the more likely spousal support will be awarded.

The larger the income gap, the larger the amount.

Something most people don’t realize is…

In states that have statutory guidelines, alimony is usually 10-25% of the paying spouse’s gross income. That gives you a ballpark figure of what to expect.

But as mentioned, each situation is different.

Common Misconceptions About Spousal Support

A lot of myths exist around spousal support. Let’s set the record straight.

Myth #1: Only Women Receive Spousal Support

Old school thinking.

The law is gender-neutral. Both spouses can ask for support if they need it. And the trends are changing.

According to a survey by the American Academy of Matrimonial Lawyers, 45% of divorce attorneys have seen an increase in women paying alimony since 2014.

With more women out-earning their husbands, more men are becoming eligible for support.

Myth #2: Spousal Support Is Permanent

Permanent alimony is really rare these days.

The norm is for support orders to have an expiration date. Rehabilitative support is designed to be temporary so that both parties can move forward with their lives.

Payments can also be modified and terminated. Job losses, retirement, and remarriage can all affect the order.

Myth #3: You Automatically Receive Support If You Earn Less

False.

Just because you earn less than your spouse that doesn’t mean the court will automatically award you alimony.

Judges look at the whole picture. Do you have the ability to work? What is your earning potential? How long was the marriage?

Courts rarely award spousal support in short marriages where both spouses are working.

Myth #4: Support Agreements Are Fixed

Life happens.

Job losses, health problems, and major income changes can all be a basis for modifying a support order.

If circumstances change significantly, either party can request a review of the order.

The key is to document the change, and go through the proper legal channels.

The Tax Implications

The alimony tax deductions used to work one way. For any divorces completed after 2018, that all changed.

For alimony to be deductible, it has to be paid under a divorce agreement or separation instrument executed before 2019.

Alimony payments are no longer tax-deductible for the payer and recipients don’t have to report them as income. This used to be a huge advantage for the person writing the checks. As of 2018, it’s no longer a factor.

This is important to remember because it changed the way both parties approach spousal support.

Make sure your attorney is keeping these factors in mind during negotiations.

Wrapping Things Up

Spousal support shouldn’t be a mystery to you. Armed with an understanding of the different types, the basics of how courts calculate support, and the myths to avoid, the whole process becomes much clearer.

Let’s recap:

• Spousal support isn’t automatic. It depends on the facts of the case.
• Most spousal support is temporary. Judges prefer rehabilitative support.
• Either spouse can receive support. Gender doesn’t matter.
• Calculations vary from state to state. Know the laws in your area.
• Orders can be modified. Life changes can justify a change.

The most important thing you can do is be informed. Talk to a family law attorney who can evaluate your case and help you understand what to expect.

Knowledge truly is power and in this case, it can take a huge weight off your shoulders.