What is Considered Income for Spousal Support?

December 7, 2019August 12, 2020
by Angie

If you’re like many people going through a divorce in California, you need to know what is considered income for spousal support. That’s true whether you’re likely to have to pay spousal support (commonly called alimony) or whether you’re likely to receive it.

Usually, the court awards alimony to the lower-earning spouse. It’s a way to level the playing field so that the lower earner has time to get on his or her feet and become completely self-sufficient.

When a judge awards spousal support, he or she must consider the paying spouse’s income.

But what is considered income for spousal support? Here’s what you need to know.

What is Considered Income for Spousal Support?

Judges will only award spousal support when one spouse makes a significant amount more than the other does. The alimony must be fair and reasonable to the lower-earning spouse, but it has to be something that the higher-earning spouse can actually afford. That’s why the courts consider income as a major factor.

Income for spousal support includes all sources of money that a person receives, whether it’s through a paycheck, through stock dividends or through another source. Generally, everything that you’d pay income tax on when it’s time to make a payment to the IRS counts as your income.

What About Imputed Income?

If the person who is supposed to pay spousal support is working a job that pays less than what he or she could earn – especially if the person is doing it purposefully to avoid paying spousal support or child support – the courts can figure out an amount based on a higher figure. That’s known as imputing income for support, and it means that the court will attribute income to a person who hasn’t actually earned it.

Here’s an example: Your ex takes a $20 per hour job as a mall security guard, even though he or she is an established draftsman or engineer who was previously employed in a large firm (and made more than $20 per hour). The court may use the salary from your ex’s previous job to determine how much support he or she should pay. That’s imputed income that your ex could reasonably earn, as shown by his or her prior employment history.

Here’s another example: Your ex has been earning $90,000 per year in a long-term job. However, that job requires a lot of travel. Your ex quits and takes another job making just half of his or her previous salary – and then says that spousal support is unaffordable. The judge in your case will want to know why your ex quit the stable, long-term job, and you’ll have a chance to explain that it was completely voluntary. In a case like that, the judge could impute income, resulting in a spousal support payment comparable to what you’d receive if your ex still had the $900-per-year job.

A Word on Spousal Support AS Income

When someone receives spousal support, he or she must count it as income when filing federal and state tax returns. According to the IRS, alimony needs to be included in a person’s income if the two parties involved meet the following conditions:

The spouses don’t file a joint return with each other
The payment is in cash (including checks or money orders)
The payment is to or for a spouse or a former spouse made under a divorce or separation instrument
The divorce or separation instrument doesn’t designate the payment as not alimony
The spouses aren’t members of the same household when the payment is made (this requirement applies only if the spouses are legally separated under a decree of divorce or of separate maintenance)
There’s no liability to make the payment (in cash or property) after the death of the recipient spouse
The payment isn’t treated as child support or a property settlement

As a side note, if you pay spousal support, the IRS says “Alimony is deductible by the payer spouse.”

Do You Need Legal Advice on What is Considered Income for Spousal Support?

If you need legal advice, such as what is considered income for spousal support, or if you want to find out whether you’ll have to pay – or be entitled to – spousal support, we can help. Call us at (209) 989-4425 or get in touch with us online to schedule your consultation. We’ll help you with every aspect of your divorce, from child custody and child support to property division.

Divorce

If I Get Remarried, Do I Still Have to…

December 1, 2019August 12, 2020
by Angie

“If I get remarried, do I still have to pay alimony?”

This is a pretty common question – and it’s one there’s a definite answer to.

Yes, you still have to pay alimony to your former spouse if you get remarried. Here’s a closer look at what alimony is, why you pay it, and when you can stop paying it.

If I Get Remarried, Do I Still Have to Pay Alimony?

When you remarry someone after a previous marriage, you’re still obligated to pay alimony to your former spouse. (Only if you have a court order, though – otherwise, you aren’t legally obligated to pay spousal support.)

However, if your former spouse remarries – the one to whom you’re paying alimony – your obligation most likely ends.

What is Alimony?

Alimony, which is technically called spousal support, is money one party to a marriage must pay the other party. Spousal support can change hands for a short period of time, or the paying spouse may have to pay the receiving spouse until one passes away. When a court orders spousal support, these are the factors the judge must consider:

Each party’s earning capacity
How much the supported party contributed to the supporting party’s education, career or licensure
The supporting party’s ability to pay
Each spouse’s needs based on the standard of living established during the marriage
Each spouse’s assets and obligations
The duration of the marriage
Each spouse’s age and health
Evidence of a history of domestic violence or criminal convictions
Tax repercussions for each spouse
The balance of hardships to each party
The ultimate goal that the supported party will be self-supporting within a reasonable amount of time
Any other factors the court feels are just and equitable

Spousal Support: Why One Party May Have to Pay

Spousal support is typically only meant to help the lower-earning spouse to get on his or her feet. A judge may order it for a few years or longer, depending on the amount of time it should take for the other party to become self-sufficient.

In cases where one spouse stayed home to care for the children and the home while the other was the only income-earner, the court may award the stay-at-home spouse alimony so that he or she can gain the skills necessary to get a job and be competitive in the labor market. Likewise, in cases where one spouse stayed home to “hold down the fort” while the other went to school or furthered his or her career, the judge may order spousal support.

How Long Do You Have to Pay Alimony?

You have to pay alimony for as long as the judge orders it. Most spousal support orders come with conditions that will terminate spousal support. For example, if the receiving spouse remarries, he or she won’t be entitled to spousal support payments any longer; there’s a new spouse in the picture who can contribute to that person’s income.

“But if I get remarried, do I still have to pay alimony?” If that’s what you’re wondering, the answer is yes. Your remarriage doesn’t have any bearing on your former spouse’s needs. You must still pay alimony until your court order terminates it (such as when the supported spouse gets remarried or dies, or when the court ordered it for a specific period of time and that time expires).

You can ask the judge in your case to modify your spousal support order, though, even if none of the conditions that would ordinarily stop alimony payments have been met. You must show the court that circumstances have changed significantly. For example, if your income changes drastically and you can no longer afford to pay, you can petition the court to change your order. If the supported spouse moves in with someone, or if he or she starts making a lot more money, you can also ask the court to change your order. Your best bet is to consult with an attorney if you want to change the amount of spousal support you must pay.

Do You Need to Talk to a Lawyer About Spousal Support?

While you can call us to ask, “If I get remarried, do I still have to pay alimony?” and we’ll be happy to hear from you, please know that the answer is yes. You still have to pay alimony if you get remarried. Otherwise, you can talk to us about changing your spousal support order, or get legal advice on whether you’ll have to pay alimony as part of your divorce – just call us at (209) 989-4425 or get in touch with us online to schedule your consultation. We’ll help you with every aspect of your divorce, from child custody and child support to property division.

Divorce

Temporary vs. Permanent Spousal Support in California

November 17, 2018January 17, 2019
by Angie

Temporary and permanent spousal support in California are very different – but here’s what you need to know about each before you ask for an alimony order in your divorce case.

Asking for Temporary vs. Permanent Spousal Support in California

Under California law, you have the right to ask for spousal support as soon as you begin your case. Either spouse can ask for it, regardless of who initiated the divorce.

Temporary spousal support provides you with support while your divorce is going on. A judge won’t put in a permanent support order until he or she issues you your divorce agree.

Temporary Spousal Support

Temporary alimony is a term that refers to a temporary order of spousal support that’s only good during the time you’re actively going through your divorce (this is known legally as pendente lite support). This type of order ends when a judge issues a final decree that orders – or doesn’t order – further spousal support.

Duration of Spousal Support After Your Divorce

You may receive spousal support for a certain period of time after your divorce, or you may receive it until one of you dies (except if you remarry or something else happens that changes your or your ex’s circumstances dramatically).

How Long Does “Permanent” Spousal Support Last?

A judge can order spousal support to last for months or years. Generally, the court looks at both spouses’ financial situations and how long it would take for the supported spouse to get back on his or her feet and provide for him- or herself at a reasonable standard of living. Judges look at a lot of factors when they’re figuring out how long temporary spousal support should last, including:

Both spouses’ assets (including separate property)
Both spouses’ debts
Both spouses’ financial needs according to the marital standard of living they established
How extensively the supported spouse contributed to the paying spouse’s education, training, career or licensure in his or her field
How extensively the supported spouse’s earning capacity is lowered because he or she was unemployed during the marriage
How long it would take for the supported spouse to acquire the skills, education or training necessary to get a job, as well as how much it would cost
The age and health of each spouse
The length of the marriage
The supported spouse’s ability to work outside the home without derailing his or her dependent children’s lives
The supported spouse’s marketable skills, and whether he or she is likely to be able to get a job

Permanent spousal support usually isn’t truly permanent. For most short-term marriages (those that lasted under 10 years), permanent alimony doesn’t typically last more than half the length of the marriage. If you were married for 5 years, you probably shouldn’t expect to receive alimony for longer than about 2 years and 6 months. And even if a judge doesn’t put a time limit on your spousal support, some things can change the amount of alimony you receive or pay.

For example, if the supported spouse remarries, the paying spouse’s obligation to support him or her usually ends (unless the divorce settlement agreement says otherwise). In some cases, if the supported spouse lives with someone – a romantic partner or a roommate – the paying spouse can petition the court to lower or stop spousal support payments. Finally, if the paying spouse can show the court that his or her circumstances have changed drastically (such as the loss of a job), he or she may be able to lower or stop spousal support payments.

In most cases, the paying or supported spouse must go to court and ask for an official order that changes the spousal support payment requirements. The paying spouse can’t just stop paying – there can be serious legal consequences for doing something like that.

Do You Need to Talk to a Lawyer to Learn More About Temporary vs. Permanent Spousal Support in California?

We’ll be more than happy to explain temporary vs. permanent spousal support in California. Just call us at (209) 989-4425 or get in touch with us online to talk to a lawyer who can help today. We’ll help you with every aspect of your divorce, from child custody and child support to property division.

Tag: <span>Permanent Spousal Support</span>

What is Considered Income for Spousal Support?

What is Considered Income for Spousal Support?

What About Imputed Income?

A Word on Spousal Support AS Income

Do You Need Legal Advice on What is Considered Income for Spousal Support?

If I Get Remarried, Do I Still Have to…

If I Get Remarried, Do I Still Have to Pay Alimony?

What is Alimony?

Spousal Support: Why One Party May Have to Pay

How Long Do You Have to Pay Alimony?

Do You Need to Talk to a Lawyer About Spousal Support?

Temporary vs. Permanent Spousal Support in California

Asking for Temporary vs. Permanent Spousal Support in California

Duration of Spousal Support After Your Divorce

How Long Does “Permanent” Spousal Support Last?

Do You Need to Talk to a Lawyer to Learn More About Temporary vs. Permanent Spousal Support in California?