Alimony
Who pays whom, how much and for how long?
You probably already know who (if either of you) will be paying whom. You may not yet know how long those dollars (if any) will flow from one hand to the other. But what you really want to know is “How much?”
Let’s skip the suspense. The magic number for the percentage of income that determines alimony is … variable. Any number chosen is merely a ballpark figure and will most likely prove to be a starting point on which to add or subtract.
For example, you could take 30% of the difference between your respective incomes, and then divide by 12 to determine how much a monthly check would be written and sent to the supported party.
However, the “rule of thumb” practice of alimony determination was thrown out by the courts when the magic number for the percentage was actually 25. Yet some attorneys still informally use 30% as a starting point, then adjust the figure based on individual factors of a couple.
Today, there is no exact formula for determining alimony. Many factors must be considered. Moreover, alimony must be fact-based.
Read through the information on this page to acquaint yourself with the basic information you need to start creating your alimony proposal. Prior to submitting it during your mediation sessions, you may wish to consult with a review attorney to help determine if it is complete as well as fair and equitable to both parties.
Types of Alimony
Open Durational
Permanent alimony is no longer a widespread term in a divorce agreement. Today, the number of months or years is specified, as guided by The Fourteen Factors. Normally, this type of alimony is mostly applied to marriages that have lasted 20 years or more.
Limited Duration
For marriages lasting less than 20 years, alimony does not exceed the length of the marriage, unless “exceptional circumstances” exist, such as: the spouse/partner has a chronic illness; the spouse/partner has given up a career; the ages of the parties at the time of marriage and the amount of the alimony.
Rehabilitative
For an economically dependent spouse, this type of alimony is meant to enhance and improve earning capacity, such as occupational training, certification, license, education or reasonable time to secure employment, start a business or offer a product or service that provides sufficient income. This type of alimony can be coupled with other types of alimony and does not automatically end with remarriage.
Reimbursement
This type of alimony is applicable in the instance of one partner enabling the other to secure an advanced degree or professional license. In such a case, the financial sacrifice(s) resulted in a reduction of a standard of living. The alimony can be coupled with other types of alimony and may not be modified for any reason.
Retirement
This type of alimony refers to the age of the party when eligible to receive full benefit under the Social Security Act. It may continue with the show of good cause, but is rebuttable when the payer reaches the full retirement date.
To Determine Alimony
Establish Your Foundation
Ideally, your Parenting Plan will be set first, followed by your Monthly Budgets and Division of Assets.
These terms of your divorce agreement require both of you to download and fill out the important CIS (Case Information Statement) document. Doing so will save you time during your mediation, and therefore save you money.
Review The Fourteen Factors (below)
Alimony must be justified and fact-based. Review The Fourteen Factors (below). Be prepared to refer to them when defending your position regarding alimony.
It is also important to keep in mind that your mediator as well as attorney and a judge who may review your agreement, must view your proposed alimony arrangement as fair and equitable to both parties.
Review Types of Alimony (above)
No two situations are exactly the same. That is, divorced couples have differing factors that impact alimony arrangements. For a framework for yours, review the various types of alimony below and decide which one most closely describes your proposed arrangement.
Keep in mind that both of you will most likely want to maintain the same lifestyle you experienced during your marriage. It will be helpful to know that everything you spent and everything you saved will be considered when determining alimony.
That is why starting with the CIS (Case Information Statement) is important, necessitating completing the Monthly Budgets and Division of Assets terms first in your proposed divorce agreement.
Alimony Checklist
Parenting Plan is set.
CIS has been filled out completely.
Monthly Budgets are established.
Division of Assets is established.
The Fourteen Factors have been reviewed.
The Type of Alimony has been selected.
Alimony proposal has been drafted.
The Fourteen Factors
When a couple opts to have a judge decide on the matter of alimony, fourteen factors help guide the decision, based on the New Jersey Revised Statues Section 2A:34-23 - Alimony, maintenance:
Actual need and ability to pay.
Duration of marriage.
Age, physical and emotional health of the parties.
Stand of living in the marriage and the likelihood that can maintain a reasonably comparable standard of living, with neither party having a greater entitlement to that standard of living than the other.
Earning capacities, educational levels, vocational skills and employability.
Length of absence from the job market of the party seeking maintenance.
Parental responsibilities for children.
Time and expense to acquire education and training to enable party to find appropriate employment, availability of training and employment, opportunity for future acquisitions of capital assets and income.
History of financial and non-financial contributions to the care and education of children and interruption of personal careers or educational opportunities.
Equitable distribution of property and any payouts on equitable distribution out of current income.
Income available through investment of any assets.
Tax treatment and consequences of any alimony award, including designation of all or a portion of the payment as a non-taxable payment.
The nature, amount, and length of support paid, if any
Any other factors which the court may deem relevant.
“Let’s focus on your future.”
—Barbara L. Leiding, NJAPM, Divorce Mediator