What Factors Determine Alimony Amounts in Divorce?

Is Alimony Typically Awarded in a California Divorce?

No one is automatically entitled to alimony in California. The courts consider each case individually. If one spouse makes significantly more than the other, the higher-earning spouse may be ordered to make support payments. The purpose of alimony is to help maintain the standard of living established during the marriage for the lower-earning spouse until they can become self-sufficient. When the parties are or were married, alimony is called spousal support. In a domestic partnership, it is called domestic partner support.

What Are the Different Types of Alimony in California?

As stated in a California Courts article, our state has two types of spousal support.

Temporary Spousal Support

Temporary alimony may be awarded while divorce proceedings are pending to help maintain the lower-earning spouse’s standard of living. A spouse may ask the court to order temporary spousal support as soon as the divorce is filed. Once the case is finalized, temporary alimony is terminated. The parties may agree on the amount of temporary alimony between them. If they fail to do so, the court will decide the amount.

Most family court judges use a formula to calculate temporary spousal support: Monthly support = 40% of the higher-earning spouse’s net monthly income minus 50% of the lower-earning spouse’s net monthly income. However, this formula is simply a reference for the Court and not required. A judge may vary the amount based on the individual circumstances in a specific case.

Long-Term Spousal Support

Alimony paid after a divorce is finalized is called long-term or permanent spousal support. In many divorce cases, the court does not award permanent alimony to either spouse. Long-term support is most likely to be awarded after a marriage of long duration or when one party earns significantly more money than the other. In California, alimony is gender-neutral – either spouse may request an order of spousal support from the court. Judges consider various factors in determining whether to award spousal support and, if so, the amount and duration.

What Factors Do the Courts Consider in Determining Alimony?

There is no set formula for calculating permanent alimony court orders. Family court judges have considerable discretion in determining the amount and duration of long-term spousal support payments. As California is a no-fault divorce state, the courts do not consider infidelity or other marital misconduct in determining alimony, except in the case of domestic violence victims, who may receive higher amounts. Factors judges consider are outlined in the California Family Code Section 4320 and include the following:

• Duration of the marriage: This is a significant factor in determining how long alimony payments will continue. Marriages that last ten years or longer are generally considered long-term, in which case the court may award permanent spousal support. If alimony is awarded after a shorter marriage, the duration of support is typically limited. According to the statute, the goal is for the supported party to become self-supporting within a “reasonable period of time,” which is generally considered one-half of the time the two parties were married. However, the court has the discretion to order support for a longer or shorter period, depending on the circumstances.
• Standard of living: A goal of the court in determining alimony is to maintain the standard of living established during the marriage. If one spouse earns significantly more than the other, the judge may order spousal support from the higher-earning spouse so the lower-earning spouse can have a similar lifestyle following the divorce.
• Earning capacity of each party: The court considers the education, work experience, skills, and overall earning capacity of each spouse, as well as the current job market. A spouse with a much higher earning capacity may be required to make support payments.
• Assets and debts of each spouse: Family court judges consider the property, investments, and assets of both spouses, as well as their debts and financial obligations. A spouse who exits the marriage with fewer assets or significant debts may be awarded higher alimony payments.
• Age and health of each party: Poor health and aging can significantly impact one’s ability to earn a living. An older spouse or one with health issues may receive higher amounts of spousal support.
• Ability to pay support: The court considers the higher-earning spouse’s ability to make support payments while meeting his or her financial needs. A spouse with a higher income and significant assets may be ordered to pay more alimony.
• Contributions to the marriage: In determining alimony, the court considers all contributions to the marriage, including non-financial contributions, such as homemaking and raising children. A spouse who put a career on hold to support the family may be compensated with higher alimony payments.
• Financial needs of each spouse: The court considers the financial needs of each spouse and aims to ensure both spouses can meet their needs post-divorce. Basic financial needs include housing, healthcare, education, and other essentials.
• Tax consequences: For divorces finalized after 2019, alimony payments are no longer tax-deductible for the payor and no longer taxable for the payee for federal income tax purposes. The same rules do not apply to California state income tax. Spousal support payments may be deducted from a state return, and alimony received must be reported as taxable income. The courts consider the tax consequences for both spouses in determining.

How Can an Experienced California Divorce Attorney Help?

The laws on the critical issues in a divorce can be complicated and challenging to understand. Although the statutes provide guidelines, family court judges have considerable discretion in determining whether to award alimony, how much support will be paid, and how long the payments will continue. Having an experienced California divorce attorney to protect your rights and interests and guide you skillfully through the legal challenges of divorce is extremely important. Contact Khosroabadi & Hill at 858-240-2093.