Alimony

Question 1

General Principles

Answer 1

1-paid to the economically dependent spouse
2-4 types of alimony (also known as spousal support or maintenance)–more than 1 type can be awarded
3-there’s a trend to award less money than in the past because of the 2 earning households and less economic dependence
4-trial court is vested w/ great discretion in awarding support

Question 2

Types of Alimony

Permanent Periodic Support

Answer 2

1-example (periodic alimony of $2000/month to wife until her death or remarriage)
2-duration (indefinite)
3-modification (can be increased, decreased, or terminated upon proof of substantial change of circumstances)

Question 3

Types of Alimony

Lump Sum Support

Answer 3

1-example (sum of $36,000 paid at a rate of $1000/month for 36 months)
2-duration (for specified time period; can be payable in installments or lump sum)
3-modification (none–treated like K right–binding on payor’s estate)

Question 4

Types of Alimony

Rehabilitation Support

Answer 4

1-example (rehabilitative alimony to wife of $1000/month for 36 months to gain education/skills)
2-duration (for specified time period, unless modified)
3-modification (can be increased, decreased, or terminated upon proof of substantial change of circumstances)

Question 5

Types of Alimony

Reimbursement Support

Answer 5

1-example (sum of $20,000 as repayment for the supporting spouse’s contribution to the increased education provided to the other spouse)
2-duration (for specified time period; can be payable in installments or lump sum)
3-modification (none–treated as K right

Question 6

Factors To Consider When Awarding Alimony

Answer 6

1-standard of living during marriage
2-duration of marriage
3-age and physical/emotional conditions
4-financial resources of each party
5-contribution of each party to the marriage
6-time needed to obtain education or training
7-ability of payor spouse to meet his needs and pay support
8-marital fault in some jurisdictions

Question 7

2 Primary Considerations When Awarding Alimony

Answer 7

Need of one spouse AND ability of other spouse to pay

Question 8

Modification of Spousal Support

Answer 8

1-spousal support is modifiable based on substantial & material change of circumstance affecting the needs of the recipient spouse or the ability of the other spouse to pay
2-generally, a voluntary reduction in income will not be sufficient to reduce the obligation

Question 9

Termination of Spousal Support

Answer 9

1-periodic payments generally terminate:
i-remarriage of recipient
ii-death of either spouse
iii-in some jurisdictions, on cohabitation w/ another person
2-lump sum awards survive death and aren’t modifiable

Question 10

Tax Consequences of Spousal Support

Answer 10

1-generally, spousal support is includable in the income of the recipient and deducible by the payor, unless otherwise provided by agreement