Financial support for a spouse was once called alimony
and is now referred to as spousal maintenance. Under Minnesota law the
two terms mean the same thing. Alimony or spousal maintenance is awarded
to either spouse in an effort to maintain the standard of living that
both parties were accustomed to during the marriage. Spousal maintenance
awarded prior to the divorce is called pendente lite alimony. It is
taxable income to the recipient and tax deductible to the payer.
Spousal maintenance is typically ordered where one spouse
lacks the capacity to become fully self- supporting given the income
and resources available to that spouse. If one spouse is unable to become
self- supporting, and the other spouse is able to provide for their
assistance, that other spouse may be required to pay spousal maintenance.
At the time of divorce, if alimony is awarded, it can
be done in one or a combination of the following manners:
- Permanent: This type of alimony is to be paid until
either the death of the payer of the remarriage of the recipient.
Some agreements may include a "cohabitation" clause that
states alimony ends when the recipient cohabits with another person
in the avoidance of marriage.
- Lump sum: This type of alimony is one payment of
alimony instead of periodic (usually weekly or monthly) payments.
Lump sum alimony just like all other alimony is taxable, so be sure
to consult with a CPA experienced in divorce to determine the tax
consequences of this type of payment prior to agreeing to it.
- Temporary: This type of alimony lasts for a specific
period of time, usually one to two years. This type of alimony may
be awarded when the persons involved are on almost equal ground
but due to certain circumstances one person may need financial assistance
in order to "get on their feet".
- Rehabilitative: This type of alimony is the
most commonly awarded alimony. It is awarded in a situation where
the recipient is younger, or able to eventually enter or return
to the workforce and become financially self-supporting. Rehabilitative
alimony may include payments for the education necessary to enable
the recipient to become self- supporting.
Under Minnesota law when spousal maintenance is
ordered it is normally considered either rehabilitative or permanent.
As described above, the intent of this kind of maintenance is to allow
the other spouse to get rehabilitated and become self-supporting, sometimes
through education and training, and sometimes through working on the
job. This type of maintenance award is normally more common in shorter
marriages.
Permanent maintenance is maintenance that can continue
indefinitely, possibly for the remainder of both spouses' lives. Permanent
maintenance is ordered when it is uncertain as to whether the lower
earning spouse can ever fully become self- supporting. This is more
common in marriages of long duration, or in marriages where one spouse
has a physical or mental disability, which make it unlikely that they
can become self-supporting.
It is often very difficult to determine spousal maintenance.
Minnesota does not have any spousal maintenance guidelines on exactly
how much spousal maintenance is typical. Quite often it is best to look
at the incomes of the parties and the reasonable budgets that both parties
will have once they are separated. This will help to determine what
amount of spousal maintenance will be reasonable. It is also helpful
to try to determine the future career path of each spouse and what the
spouses are likely to make in the future. Sometimes when it is uncertain
what one spouse can make in the future, a vocational expert will be
attained, or a vocational assessment will occur to assist in determining
the future earnings of that spouse.
Under Minnesota law, when the Court determines if an
award of spousal maintenance is appropriate, they may look at the following
factors:
- The amount of the property the spouse will
have upon settlement, and the needs of that spouse in light of the
standard of living during the marriage;
- Whether the spouse will be self-supporting, taking
into consideration the standard of living during the marriage;
- Whether the payment of maintenance will allow the
children to remain in the home, and the circumstances which warrant
having the custodial parent remain home with the children.
Factors in Determining Spousal Maintenance
In determining how much maintenance the spouse will receive
and the length of time the maintenance will continue, the Court considers
many of the following factors. These include but are not limited to:
- Length of marriage
- Age, as well as physical, mental and emotional state
of each party
- Income and liability of each spouse
- Other income, including but not limited to interest
and dividends
- Present and potential earning capacity of each spouse
- The standard of living of both spouses during the
marriage
- Child care or child support obligations
- Economic needs of each spouse
- The opportunity of each spouse for further acquisition
of assets and income
- The time necessary for either spouse to acquire further
education to enable them to obtain gainful employment
- The contribution by one spouse to education and furtherance
of career of the other
- The contribution of one spouse as a homemaker
- How much the earning power will be affected by the
parenting requirements of the custodial parent
For an additional article on alimony or spousal maintenance
in Minnesota, click here.
