Alimony

Alimony

Alimony (also called maintenance (Britain) and spousal support (U.S.)) is a U.S. term denoting a legal obligation to provide financial support to one's spouse from the other spouse after marital separation or from the ex-spouse upon divorce. It is established by divorce law or family law in many countries and is based on the premise that both spouses in theory have a legal obligation to support each other during their marriage (or civil union) or upon separation or/and divorce.

Contents

History

Alimony has been discussed in ancient legal texts including the Babylonian Code of Hammurabi (#137-#142)[1] and the Code of Justinian.[citation needed] The concept of modern alimony in the United States derives from English ecclesiastical courts which awarded alimony in cases of separation and divorce. Alimony Pendente lite was given until the divorce decree, based on the husband's duty to support the wife during a marriage that still continued. Post-divorce or permanent alimony was also based on the notion that the marriage continued, as ecclesiastical courts could only award a divorce a mensa et thora, similar to a legal separation today. As divorce did not end the marriage, the husband's duty to support his wife remained intact.[2] The term alimony comes from the Latin word alimonia ("nourishment, sustenance", from alere, "to nourish"), and was a rule of sustenance to assure the wife's lodging, food, clothing, and other necessities after divorce.[3]

Liberalization of divorce occurred in the nineteenth century, but divorce was only possible in cases of marital misconduct. As a result, the requirement to pay alimony became linked to the concept of fault in the divorce.[4] Alimony to wives was paid because it was assumed that the marriage, and the wife's right to support, would have continued but for the misbehavior of husband. Ending alimony on divorce would have permitted a guilty husband to profit from his own misconduct. In contrast, if the wife committed the misconduct, she was considered to have forfeited any claim to ongoing support. However, during the period parties could rarely afford alimony and so it was rarely awarded by courts.[2] As males' incomes increased, and with it the possibility of paying alimony, the awarding of alimony increased, generally because a wife could show a need for ongoing financial support and the husband had the ability to pay.[2][5] No-fault divorce led to changes in alimony. Whereas spousal support was considered a right under the fault-based system, it became conditional under the no-fault approach.[5] According to the American Bar Association, marital fault is a "factor" in awarding alimony in 25 states and the District of Columbia.[6] Permanent alimony began to fall out of favor, as it prevented former spouses from beginning new lives,[5] though in some states (e.g., Massachusetts, Mississippi and Tennessee), permanent alimony awards continued.[7][8][9][10] Alimony moved beyond support to permitting the more dependent spouse to become financially independent or to have the same standard of living as during the marriage or common law marriage though this was not possible in most cases.[2][11]

In the 1970s the United States Supreme Court ruled against gender bias in alimony awards, and the percentage of alimony recipients who are male rose to 3.6% in 2006.[12] In states like Massachusetts and Louisiana, the salaries of new spouses may be used in determining the alimony paid to the previous partners.[10] [13] Most recently, in several high profile divorces females such as Britney Spears, Victoria Principal and Jessica Simpson have paid multi-million dollar settlements in lieu of alimony to ex-husbands who were independently wealthy.[14][15] According to lawyers, males are becoming more aggressive in the pursuit of alimony awards as the stigma associated with asking for alimony fades.[15]

Reckoning

Once dissolution proceedings commence, either party may seek interim or pendente lite support during the course of the litigation.

Where a divorce or dissolution of marriage (civil union) is granted, either party may ask for post-marital alimony. It is not an absolute right, but may be granted, the amount and terms varying with the circumstances. If one party is already receiving support at the time of the divorce, the previous order is not automatically continued (although this can be requested), as the arguments for support during and after the marriage can be different.

Unless the parties agree on the terms of their divorce in a binding written instrument, the court will make a determination based on the legal argument and the testimony submitted by both parties. This can be modified at any future date based on a change of circumstances by either party on proper notice to the other party and application to the court. The courts are generally reluctant to modify an existing agreement unless the reasons are compelling. In some jurisdictions the court always has jurisdiction to grant maintenance should one of the former spouses become a public charge.

In the U.S. state law establishes requirements regarding alimony (and child support) payments, recovery and penalties. A spouse trying to recover back alimony sometimes may use only the collection procedures that are available to all other creditors (such as reporting the amount due to a collection agency).

One who allows his or her alimony obligations to go into arrears, where there is an ability to pay, may be found in contempt of court and be sent to jail.[16] Alimony obligations are not discharged as a result of the obligee filing bankruptcy.[17] Ex-spouses who allow child-support obligations to go into arrears may have certain licenses seized, be found in contempt of court, and/or be sent to jail.[18] Like Alimony, child-support obligations are not discharged as a result of the obligee filing bankruptcy.[17]

Child support

Alimony is not child support, where, after divorce, one parent is required to contribute to the support of their children by paying money to the child's other parent or guardian. Considered a payment that a parent is making for the support of their offspring, the parent who pays child support pays the taxes [19] however, alimony is treated as taxable income to the receiving spouse, and, in certain cases, deducted from the gross income of the paying spouse.

Factors affecting alimony

The determination of alimony varies greatly from country to country and from state to state within the U.S.[4] Some state statutes, including those of Texas, Montana, Kansas, Utah, Kentucky and Maine, give explicit guidelines to judges on the amount and/or duration of alimony. In Texas, Mississippi and Tennessee for example, alimony is awarded only in cases of marriage or civil union of ten years or longer and the payments are limited to three years unless there are special, extenuating circumstances. Furthermore, the amount of spousal support is limited to the lesser of $2,500 per month or 40% of the payee's gross income.[20][21][22] In Delaware, spousal support is usually not awarded in marriages of less than 10 years.[20] In Kansas, alimony awards cannot exceed 121 months.[20] In Utah, the duration of alimony cannot exceed the length of the marriage.[20] In Maine, Mississippi, and Tennessee alimony is awarded in marriages or civil union of 10 to 20 years and the duration is half the length of the marriage barring extenuating circumstances.[20] Other states, including Massachusetts, California, Nevada and New York have relatively vague statutes which simply list the "factors" a judge should consider when determining alimony (see list of factors below).[20][23][24][25] In these states, the determination of duration and amount of alimony is left to the discretion of the family court judges who must consider case law in each state. In Massachusetts, Mississippi, Texas and Tennessee, for example, there are 135 Appellate cases in addition to 47 sections of State Statute that shape divorce law. As a result of these Appellate Cases, for example, Massachusetts and Mississippi judges cannot order an end date to any alimony award. Most alimony awards in the states are made for life usually regardless of the length of the marriage or civil union (for marriages or civil unions over 10 years).[23][26]

In general, there are four types of alimony.[27]

Temporary Alimony: Support ordered when the parties are separated prior to divorce. Also called alimony pendente lite which is Latin meaning "pending the suit".

Rehabilitative Alimony: Support given to a lesser earning spouse for a period of time necessary to acquire work outside the home and become self-sufficient.

Permanent Alimony: Support paid to the lesser earning spouse until the death of the payor, the death of the recipient, or the remarriage of the recipient.

Reimbursement Alimony: Support given as a reimbursement for expenses incurred by a spouse during the marriage (like educational expenses).

Some of the possible factors that bear on the amount and duration of the support are:

Factor Description
Length of the marriage or civil union Generally alimony lasts for a term or period, that will be longer if the marriage or civil union lasted longer. A marriage or civil union of over 10 years is often a candidate for permanent alimony.
Time separated while still married In some U.S. states, separation is a triggering event, recognized as the end of the term of the marriage. Other U.S. states do not recognize separation or legal separation. In a state not recognizing separation, a 2-year marriage followed by an 8-year separation will generally be treated like a 10-year marriage.
Age of the parties at the time of the divorce Generally more youthful spouses are considered to be more able to 'get on' with their lives, and therefore thought to require shorter periods of support.
Relative income of the parties In U.S. states that recognize a right of the spouses to live 'according to the means to which they have become accustomed', alimony attempts to adjust the incomes of the spouses so that they are able to approximate, as best possible, their prior lifestyle.
Future financial prospects of the parties A spouse who is going to realize significant income in the future is likely to have to pay higher alimony than one who is not.
Health of the parties Poor health goes towards need, and potentially an inability to support oneself. The courts do not want to leave one party indigent.
Fault in marital breakdown In U.S. states where fault is recognized, fault can significantly affect alimony, increasing, reducing or even nullifying it. Many U.S. states are 'no-fault' states, where one does not have to show fault to get divorced. No-fault divorce spares the spouses the acrimony of the 'fault' processes, and closes the eyes of the court to any and all improper spousal behavior. However, in Georgia a person who has an affair that causes the divorce is not entitled to alimony.[28]
Gender of the recipient In general, females may be more likely to be granted alimony than males because, historically, males made more money than females, partly due to having had fewer gaps in employment.

The following is a list of Alimony factors by state compiled by the American Bar Association[29]

Alimony Reform in the United States

In the United States family laws and precedents as they relate to divorce, community property and alimony vary based on state law. Also, with new family models, "working couples", "working wives", "stay-at-home dads", etc. there are situations where some parties to a divorce question whether traditional economic allocations made in a divorce are fair and equitable to the facts of their individual case. Some groups have proposed various forms of legislation to reform alimony parameters (i.e. amounts and term).[5] [13][30][31][32][33] Alimony terms are among the most frequent issues causing litigation in family law cases.[5][8] Eighty percent of divorce cases involve a request for modification of alimony.[34][35]

English Common Law

Divorce law in the U.S. was based on English Common Law, which developed at a time when a female gave up her personal property rights on marriage (see Coverture). Upon separation from marriage, the husband retained the right to the wife's property, but, in exchange, had an ongoing responsibility to support the wife after dissolution of the marriage.[4][5][9] British law was amended by legislation including Married Women's Property Act 1870 and Married Women's Property Act 1882 which reformed females' property rights relating to marriage, by, for example, permitting divorced females to regain the property they owned before marriage.[5][9][31][34][36]

State Reform Initiatives

Some states (e.g. Florida, Texas, Maine) are moving away from permanent alimony awards that are intended to maintain a spouses' standard of living enjoyed during the marriage and are moving towards durational or rehabilitative alimony.[31][37] In other states, like Mississippi, Massachusetts and Tennessee, alimony is usually awarded for life.[10][38][39]

Some of the critical issues that proponents and opponents of alimony reform disagree upon are 1) whether alimony should be temporary or permanent?,[31] 2) regardless of duration, should alimony payees have the unquestionable right to retire?,[40] 3) does the lesser earning spouse deserve alimony to meet his/her basic needs (sustenance) or to enough to sustain "the lifestyle accustomed to during the civil union or marriage"?,[31] 4) should the income and assets of a new spouse be used in determining how much alimony gets paid?[10] and 5) how clear and prescriptive should state statutes be versus allowing a larger degree of Judicial Discretion?[10][41][42][43][44]

In several US states, including Massachusetts, Pennsylvania, Oklahoma and New Jersey, some lawmakers are attempting change of divorce laws as they pertain to alimony.[31] Massachusetts law provides for lifetime alimony, but in early 2009 a reform bill (HB 1785) backed by a group called "Mass Alimony Reform"[45] gained 72 state representatives as co-sponsors (of a total of 200 Representatives and Senators). HB 1785 would have required a spouse receiving alimony to become self-sufficient after a reasonable time. It would have established alimony as a temporary payment instead of a permanent entitlement.[46] This law would also have addressed the issue of cohabitation[20] - where the alimony recipient is living with, but not married to a new significant other.[5][8][20][31][47][48] The Massachusetts bill failed to garner sufficient support and it was not adopted during the 2009-2010 session.[49] In January 2011, the bill was filed with the Massachusetts legislature. It was passed unanimously by the legislature and signed into law on September 26, 2011.[50][51] The law takes effect on March 1, 2012, provides for different categories of alimony, and limits the duration of alimony.[52]

In Maine, a "no-fault' divorce state, Statute §951-A provides that for marriages or civil union of between 10 and 20 years, alimony is limited to a period equal to half the length of the marriage.[21] In Texas, another no-fault state, alimony Section 8.054 limits alimony (in marriages or civil union less than 20 years) to a maximum duration of three years.[20][53] [54]

California, Connecticut, Georgia, Illinois, Oklahoma, New York, South Carolina, Tennessee, Utah, and West Virginia have all passed laws that allow for the modification or termination of alimony upon demonstration that the recipient is cohabitating with another person.[55] In April 2009, the Governor of New Jersey, Jon Corzine, signed into law changes in the alimony statutes for his state which would bar alimony payments to parents who kill, abuse or abandon their children.[56]

Legal reform in other countries

Laws regarding marriage and divorce have also been the subject of legal reform in several countries. Examples include: New Marriage Law of China (1950), Women's Charter (Singapore) (1961), Iran's Family Protection Law (1967, later repealed), Family Law Act 1975 (Australia), The Muslim Women (Protection of Rights on Divorce) Act 1986 (India) and Brussels II (2000-European Union).

Spousal Support (Alimony) In Canada

Types of Spousal Support

In Canada, spousal support may be awarded upon divorce, under the federal Divorce Act, or upon separation without divorce under provincial statutes. There are generally three different forms of spousal support awarded:

  1. Compensatory Support – This form of support compensates an individual for their contributions to the relationship as well as for any losses that individual has suffered;
  2. Non-Compensatory Support – In some cases support may be awarded on a needs basis. This form of support may be awarded by a Court where an individual is sick or disabled; and
  3. Contractual Support – This form of support upholds a contract between the parties which governs support payments.[57]

Married Spouses and Common-law Spouses

Both married spouses and common-law spouses may be entitled to spousal support. An important distinction between the two is that common-law spouses must start an action claiming spousal support within one year of the breakdown of the relationship. A second important distinction is that only married couples may divorce under the federal Divorce Act, common-law spouses may only separate under provincial legislation, such as Ontario's Family Law Act[58] or British Columbia's Family Relation's Act.[59] No such limitation arises for married individuals. In addition to being in a marriage or common-law relationship, courts will look at the conditions, means, needs and other circumstances of each spouse. This includes:

1) The length of time the spouses cohabited; 2) The functions performed by each spouse during the relationship; and 3) Any existing orders or agreements.

This is by no means an exhaustive list of factors which the court will consider when determining entitlement. Each case is determined on its own unique set of circumstances.

Factors for Awarding Spousal Support

The federal Divorce Act at s.15.2 (6) states that there are four objectives of spousal support orders:

1) Recognize any economic advantages or disadvantages to the spouses arising from the marriage or its breakdown; 2) Apportion between the spouses any financial consequences arising from the care of any child of the marriage over and above any obligation for the support of any child of the marriage; 3) Relieve any economic hardship of the spouses arising from the breakdown of the marriage; and 4) In so far as practicable, promote the economic self-sufficiency of each spouse within a reasonable period of time.[57]

Amount and Duration

The longer the length of cohabitation and the greater the disparity between each party’s incomes, the larger an award of spousal support will be and the longer the duration will be. As stated above, spousal support calculations are complex. There are no tables to use as in child support calculations. Lawyers use special software designed specifically to calculate the entitlement, amount, and duration of support. After information is input into a computer, the software will provide a range for the spousal support amount and duration.

Depending on the means and needs of the individual receiving support, the court will generally award an amount of spousal support somewhere within the range provided by the software. The longer the relationship, the greater the presumption that the parties should have an equal standard of living.

Similarly, the length of the relationship will be taken into account when determining how long spousal support should be paid for. Awards for spousal support can be for a limited term or indefinite.[60]

While declaring bankruptcy does not dissolve Canadians of obligations to pay alimony or child support a recent ruling by the Supreme Court of Canada established that under current laws: "equalization payments agreed to as part of a divorce are considered debts, and are wiped off a person's balance sheet when they declare bankruptcy." [61]

See also

References

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  • alimony — al‧i‧mo‧ny [ˈælməni ǁ moʊni] noun [uncountable] LAW money that a court orders someone to pay regularly to their former wife or husband after their marriage has ended: • According to the IRS, alimony payments are taxable to the recipient in the… …   Financial and business terms

  • Alimony — Al i*mo*ny, n. [L. alimonia, alimonium, nourishment, sustenance, fr. alere to nourish.] 1. Maintenance; means of living. [1913 Webster] 2. (Law) An allowance made to a wife out of her husband s estate or income for her support, upon her divorce… …   The Collaborative International Dictionary of English

  • alimony — An amount given to one spouse by another while they are separated or divorced. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

  • alimony — (n.) 1650s, nourishment, also allowance to a wife from a husband s estate, or in certain cases of separation, from L. alimonia food, support, nourishment, sustenance, from alere to nourish (see OLD (Cf. old)) + monia suffix signifying action,… …   Etymology dictionary

  • alimony — [n] money paid in support of a former spouse keep, livelihood, living, maintenance, provision, remittance, subsistence, sustenance, upkeep; concept 344 …   New thesaurus

  • alimony — ► NOUN chiefly N. Amer. ▪ maintenance for a spouse after separation or divorce. ORIGIN originally in the sense «nourishment, means of subsistence»: from Latin alimonia, from alere nourish …   English terms dictionary

  • alimony — [al′ə mō΄nē] n. [L alimonia, food, support < alere, to nourish: see OLD] 1. Obs. supply of the means of living; maintenance 2. an allowance that a court orders paid to a person by that person s spouse or former spouse after a legal separation… …   English World dictionary

  • alimony — /jelamaniy/ Comes from Latin alimonia meaning sustenance, and means, therefore, the sustenance or support of the wife by her divorced husband and stems from the common law right of the wife to support by her husband. Allowances which husband or… …   Black's law dictionary

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