How To Calculate Alimony

Alimony, a legal provision, can help balance the scales of economic fairness following a divorce. Calculating exactly how much one ex-spouse receives in alimony depends on a few factors, including length of marriage, both spouse’s financial situation, and established living standards during the marriage.

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What Is Alimony?

Alimony is sometimes called spousal support and is very particular to each party. We suggest to women that they consider the role they plan to have in the marriage. Are they contemplating they might take time away from their career, forgo their career, or take it down a notch to spend time with the kids and allowing their husband’s career to skyrocket?

There is nothing wrong with that, and we think the most critical thing is that being women we realize what we’re sacrificing. You could also agree that each year of your career that you sacrifice, you’ll be offset in alimony payments and additional equitable allocation.

Calculating Alimony In Arizona

There is no exact formula for determining the amount of alimony awarded. There are, however, a few basic guidelines that can help determine the estimated amount one spouse can expect to receive.

The formula first requires you to determine the difference between each spouse’s income. For example, one spouse could earn $10,000 per month, while the other spouse pulls in $5,000 per month. With a difference of $5,000, the judge will award the lower-earning spouse between 15%-25% of the difference.

The percentage in which a spouse receives depends on a few factors, such as the total length of the marriage. In most cases, the longer the marriage lasted, the higher the amount of alimony will be. The court will also take standard of living during the marriage into account when determining an amount.

Factors Determining Alimony Amount

A court will look at the following factors when determining both the amount and length of alimony:

Duration of the marriage.
Age, employment history, and earning ability of the spouse requesting alimony.
Established standard of living during the marriage.
Other spouse’s ability to pay alimony while still being able to meet his or her own needs.
Relevant excessive expenditures made during the marriage.
Financial resources of both spouses.
Physical and emotional condition of the spouse seeking alimony.
Health care costs of the spouse seeking alimony.
The amount of time the spouse will need the support.

Let’s take a look at some of these factors below in detail.

Duration Of The Marriage

The length of the marriage is a crucial factor in determining alimony, often directly influencing the amount of financial support. A longer marriage usually indicates a greater entanglement of finances and dependency, which will be addressed through the alimony award. This is because one spouse may have been financially dependent on the other, and the purpose of alimony is to alleviate any financial issues or disruptions that the divorce may have caused.

It’s also important to note that while the duration of the marriage is significant, it will not exclusively dictate the amount or length of alimony. Each individual divorce case must be evaluated on its own merits.

Needs Of Both Ex-Spouses

The needs of both spouses are crucial at this time. Courts will take a look at factors like living expenses, earning potential, and personal circumstances that can affect financial stability.

This analysis is aimed to ensure both parties meet their economic needs without imposing an unfair burden on either spouse after a divorce.

Established Standard Of Living

After first considering the duration of the marriage, the standard of living during the marriage will come into play. The court will consider homes, cars, and vacations the couple enjoyed while married. All of these will be considered into the alimony equation. This evaluation is included to provide a measure of financial continuity, which enables both spouses to sustain a similar lifestyle to the one that was established while married.

Income

The financial resources and current income of both spouses will be scrutinized during this process. The legal process will distinguish between the different types of income and assets, considering the liquidity and income generation potential. This process aims to give a fair and balanced approach to both party’s financial future.

Parenting Responsibilities

Alimony calculations will also include the valuation of non-financial contributions like homemaking and childcare duties. Courts will recognize these contributions often result in career sacrifices, and the court will assess the economic impact on the primary caregiver’s earning potential.

Source:

“How Alimony Is Calculated” Smart Asset https://smartasset.com/personal-finance/how-alimony-is-calculated

Collaborative Divorce And Child Custody

Discussions about child custody issues are always difficult during a divorce. While there is no way to make them easy or comfortable, you can find ways to work together. The collaborative divorce process helps with tools and professionals to make child custody and other decisions a little more manageable. By working together as a team, you’re able to make the decisions that are best for the kids.

Collaborative divorce can make these challenging times more manageable. It requires you to work with your spouse at a time when you have decided you need to go your separate ways. When it comes to child custody, though, you want to do all you can to make the right parenting decisions. Collaborative divorce can help create pathways for you to cooperate. If you live in the Phoenix/Scottsdale area and want to learn more about collaborative divorce, contact Ogborne Law today.