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.

Divorce

Divorce and Property Settlement: 5 Tips to Negotiate With…

February 27, 2017March 24, 2020
by Anna Maples

When you go through a divorce in California, you’ll have to go through several steps — and one of them is creating a divorce property settlement. Here’s how to negotiate during divorce so you can reach a fair, reasonable outcome.

How to Negotiate During Divorce

If you’re like most people, you have no idea how to negotiate during divorce. That’s okay, because you probably haven’t been through it before.

However, before we get into how to negotiate, we need to cover:

What is a property settlement?
Whether you have to settle on debt
Divorce property settlement laws in California

What is a Property Settlement in Divorce?

California is a community property state. That means the property you acquire (beginning on the day you marry and ending on the day your marriage ends) is supposed to be divided equally between you when you divorce.

A property settlement agreement is the agreement you and your spouse reach to divide your property equally and fairly. Equal doesn’t always mean 50-50, though. It can mean that you each get your own vehicle, even if one is valued more highly than the other, and for the most part, the courts will take into account whether you feel the agreement is fair and equitable.

Does a Divorce Settlement Agreement Include Debt?

A divorce settlement agreement does include debt. All of the debt you incur while you’re married is considered community property; you’re both responsible for it.

Divorce Property Settlement Laws in California

In many cases, divorcing couples can figure out a property division arrangement that works for everyone involved.

However, if you and your spouse cannot reach an agreement, or if the agreement you reach is obviously skewed unfairly to one side, the Superior Court steps in and splits your property and debt equally.

Now that you’re familiar with the concepts you’ll have to deal with, here’s how to negotiate during divorce.

How to Negotiate During Divorce: 5 Tips to Help You Figure Out Your Divorce Property Settlement

Ideally, you and your spouse will be able to reach an agreement on your own. If you can’t, you’ll force the judge to step in. That can drag out your divorce, and often, couples come out of the courtroom feeling as if they’ve both lost. (Your Stockton divorce and property settlement lawyer will encourage you to reach an agreement with your spouse long before you show up in court because doing so will save you time and money — and you’ll have fewer headaches with the whole ordeal.)

Check out these five tips as you learn how to negotiate during divorce:

Remember that divorce and property division are business transactions.
Be logical and reasonable every step of the way.
Watch for coercive tactics.
Use helpful, rather than harmful, phrases.
Don’t become trapped in predictable scenarios.

#1. Pledge to Look at Your Divorce and Property Division Issues as Business Transactions

When you divorce, you’re dissolving your marriage contract. While that seems like an unfeeling way to look at things, it’s how the law sees it—and your property division is no different. Treating property division as a negotiation process can make things much simpler.

#2. Be Logical and Reasonable

You can’t afford to ignore the “big picture” when you’re negotiating a divorce settlement with your spouse. You don’t have to be adversarial; in fact, looking at a divorce like something you have to win can be counterproductive.

Related: More divorce negotiation tips

#3. Watch for Coercive Tactics

While coercive tactics can be tough to spot, if your spouse is attempting to use them on you, it’s imperative that you stop, back away from the process, and regroup. Coercive tactics that some spouses employ include:

Personal attacks, including insults and implications
Lying or threats
Psychological tricks, such as attempting to get you to feel guilty
Refusal to negotiate
Escalating demands
Planning delays to make things more difficult for you
Withholding money or access to your children

Chances are good that your divorce attorney is going to notice these tactics if your spouse uses them — they’re actually fairly common in adversarial divorces.

#4. Use Helpful Phrases to Encourage Your Spouse to Cooperate

Negotiations come to a grinding halt when one party says, “I’m not going to let you win.”

Remember that in successful negotiations, both parties “win.” When you’re working with your spouse to reach an agreement, try phrases that help the process along, such as:

“Can we go over this again to make sure I understand it correctly?
“Please correct me if I’m wrong, but…”
“My main concern is fairness.”
“Or we could try…”

#5. Don’t Become Trapped in Predictable Scenarios

It’s perfectly normal for divorce negotiations to seep into your emotions. The key, though, is not letting your emotions rule the negotiation process. When your spouse becomes angry or attempts to drag you into a disagreement, step back. Take some time to cool down and let your attorney summarize the issue so you can move forward.

What Should I Ask for in a Divorce Settlement?

If you’re like many people, you’ve heard divorce stories that run the length of the entire spectrum — some people say, “She took everything from me!” while others say, “We had a fair settlement. Actually, maybe I got more than he did.”

So what should you ask for in a divorce settlement?

The answer is simple: Ask for what you need to be reasonably satisfied with the outcome. Remember, too, that the judge is unlikely to sign off on anything that’s patently unfair (to you or your spouse). Don’t ask for the house, the cars, all the furniture, your savings accounts and half your spouse’s retirement — even if you’re pretty sure you deserve all those things.

California is a community property state, which means the assets you and your spouse acquired while you were married belong to both of you. You can make trade-offs, but make sure you’re asking for things you actually want. If you only want the house so you can sell it and pocket the proceeds, you need to know that the courts will expect you to trade something of equal value — and if your spouse would remain in the house with the children, it’s probably not a great idea to try to fight for it.

How Do You Negotiate Spousal Support?

Negotiating spousal support can be one of the most difficult aspects of your divorce. Before you begin negotiations, remember that the judge in your case will only sign off on your agreement if it’s fair to both of you — and if the paying party can reasonably afford it.

When one spouse doesn’t agree that the other needs spousal support, negotiating for it can be incredibly difficult. You may need your attorney to step in. However, if you’re both in agreement that some spousal support should change hands, make sure that you can see things from your spouse’s point of view.

Try these tips to negotiate spousal support:

Stay calm. If either of you becomes upset, negotiations are going to grind to a halt.
Don’t point the finger or make demands. Try saying things like, “I feel upset when you say I’m asking for too much. It’s difficult for me to support myself when I need to go to school to learn marketable skills. I’d like it if you could help me with $X so I can get on my feet.”
Actively listen to what your spouse is saying. That means summarize what he or she is saying and repeat it back so that your spouse knows you’re actually paying attention.
Ask questions to help your spouse collaborate with you. Think about saying things like, “I’m worried about being able to pay a sitter while I’m at school. What are your ideas?”

You don’t have to know exactly how to negotiate during divorce… but you do need to go into it with a positive attitude and be willing to settle for a reasonable outcome. You also have to know that your lawyer is here to help you every step of the way.

Do You Need to Talk to a Lawyer About How to Negotiate During Divorce?

We can help you with your divorce and property settlement agreement. Just call us at 209-910-9865 to tell us what you’re going through. We’ll put together a strategy that gets you the best possible outcome.

Tag: <span>Temporary 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?

Divorce and Property Settlement: 5 Tips to Negotiate With…

How to Negotiate During Divorce

What is a Property Settlement in Divorce?

Does a Divorce Settlement Agreement Include Debt?

Divorce Property Settlement Laws in California

How to Negotiate During Divorce: 5 Tips to Help You Figure Out Your Divorce Property Settlement

#1. Pledge to Look at Your Divorce and Property Division Issues as Business Transactions

#2. Be Logical and Reasonable

#3. Watch for Coercive Tactics

#4. Use Helpful Phrases to Encourage Your Spouse to Cooperate

#5. Don’t Become Trapped in Predictable Scenarios

What Should I Ask for in a Divorce Settlement?

How Do You Negotiate Spousal Support?

Do You Need to Talk to a Lawyer About How to Negotiate During Divorce?