Alimony/Spousal Support Flashcards
True or False: Marital fault is considered in determining spousal support?
Both: Some states consider it and some states do not. It is worth mentioning both.
What are the four types of Alimony?
- Permanent Periodic
- Lump Sum
- Rehabilitative
- Reimbursement
Which forms of alimony are permanent?
Permanent Periodic.
Which forms of alimony are temporary?
Lump sum, rehabilitative, and reimbursement.
What is Permanent Periodic Payments
Indefinite spousal support made in monthly payments, which are usually granted when the spouse has neither the resources or ability to be self-sustaining.
What is reimbursement support?
Reimbursement support is generally awarded to a spouse to allow them to obtain a professional license or degree. The amount offered is a fixed amount based on the spouse’s contribution or sacrifices.
Note: CAN be awarded along with permanent or lump sum (not likely to get rehabilitative).
What is rehabilitative support?
Rehabilitative support is awarded to a spouse to gain skills to become self-supporting and can be awarded along with permanent and lump sump support.
Can Reimbursement support be modified or terminated?
No. Once it is awarded, it is a contractual right and cannot be modified or terminated.
Can rehabilitative support be modified or terminated?
Yes, it can be modified (increase or decrease amount) and terminated upon a showing a significant change in circumstances.
What is usually sufficient to terminate spousal support?
Remarrying to another person is likely sufficient as a substantial change in circumstances to terminate spousal support. EXCEPT, Lump Sum and Reimbursement.
What is lump sum support?
A lump sum to paid, which can be paid at once or overtime. It is treated as a contract and cannot be modified and is binding on the payor’s estate.
What factors are considered regarding spousal support?
A court will consider
- The standard of living establishing during the marriage,
- duration of the marriage
- The age and physical and emotional condition of the parties,
- the financial resources of the parties,
- the contribution of each party to the marriage.
True or False: Cohabitation is sufficient to terminate periodic support?
True. Periodic support (permanent periodic and rehabilitative) will be terminated by cohabitation in most jurisdictions.
Tax implications
If the instrument granting support is:
Before 2019 –> deductible by payor and income by the recipient.
After 2019 –> not a taxable event.
If an instrument made prior to 2019 is amended after 2019, it becomes a nontaxable event.
