A hotly contested issue found within many Alabama divorces is whether one spouse will be required to pay alimony (also known as spousal support or maintenance) to the other spouse.
Alimony refers to court-ordered payments from one former spouse to the other to help with living expenses and maintain the standard of living established during the marriage.
In Alabama, there is no simple calculation or formula for determining alimony. Instead, Alabama judges have broad discretion in deciding whether to award alimony, how much alimony should be paid, and for how long it should be paid.
Several key factors that judges will consider are outlined below.
Factors Considered for Alimony in Alabama
The primary factors that Alabama judges weigh in determining alimony awards are:
- The earning abilities of each spouse;
- The age and health of each spouse;
- The length of the marriage;
- The standard of living during the marriage;
- The potential future employment prospects of each spouse;
- The source, value, and type of property owned; and
- Conduct of the parties regarding the cause of the divorce.
The judge will examine each spouse's complete financial situation and needs in light of these factors. There is no rigid formula, as alimony is meant to be decided on a case-by-case basis, considering the unique circumstances.
For example, if there is a significant disparity in the spouses' earned incomes, the higher-earning spouse may be required to pay alimony to allow the lower-earning spouse to maintain a similar standard of living as during the marriage.
However, this is not automatic, and the judge will look at all circumstances.
Types of Alimony in Alabama
Different types of alimony may be awarded in Alabama divorces, including the following.
Periodic Alimony
This is alimony paid at regular intervals (such as monthly) for a specific duration ordered by the court. Periodic alimony may be modified later if there is a material change in circumstances for either spouse.
Permanent Periodic Alimony
This is similar to periodic alimony but continues until either spouse dies or the receiving spouse remarries. It does not mean permanent, as it can terminate upon retirement or other material changes.
Rehabilitative Alimony
This is temporary alimony paid for in the short term when one spouse needs education, training, or time to become self-supporting after the divorce. It allows the recipient time to reestablish a career.
Alimony in Gross/Lump Sum
Rather than periodic payments, this is a lump sum or property transfer awarded to one spouse to cover future support obligations.
The type of alimony awarded depends on the circumstances and what is appropriate based on the factors considered. Judges have wide discretion in crafting awards.
Determining Amount and Duration
Alabama statutes do not provide any specific guidelines on appropriate alimony amounts or durations. This is left up to the judge's discretion based on evaluating the complete financial picture of the divorcing spouses.
Some general principles that often apply include:
- Longer marriages increase the likelihood and duration of alimony;
- Shorter marriages may result in rehabilitative alimony only;
- Disparity in earning capacities impacts amount of alimony;
- Marital fault/misconduct can influence alimony awards; and
- Awards often aim to allow both spouses to maintain marital standard of living.
Ultimately, the amount and duration will be determined by carefully weighing the unique financial positions and needs of each spouse.
Taxes and Alimony
For divorces finalized after December 31, 2018, the new tax laws eliminate the deduction for alimony payments by the paying spouse and eliminate alimony as taxable income for the receiving spouse.
This is a change from prior laws where alimony was tax-deductible for the payer.
Modifying Alimony Orders
In Alabama, periodic alimony orders can potentially be modified if there is a material change in circumstances for either spouse. This could include things like:
- Involuntary job loss or underemployment;
- Illness or disability impacting earning capacity;
- Substantial inheritance or financial windfall;
- Voluntary pay cut or early retirement; and
- Cohabitation by receiving spouse.
However, the burden is on the requesting spouse to demonstrate a material change has occurred that justifies revisiting the original alimony order.
Termination of Alimony
Unless it is specifically designated as non-modifiable, periodic alimony will terminate upon:
- Remarriage of the receiving spouse;
- Death of either spouse; and
- Cohabitation by the receiving spouse.
Even if periodic alimony does not automatically terminate upon these events, they would likely constitute a material change in circumstances allowing for a modification request.
Next Steps for Alabamians Considering Alimony
As this overview illustrates, alimony determinations in Alabama divorces are highly fact-specific and largely left to the discretion of judges reviewing the complete financial pictures of each spouse.
If you are considering divorce in Alabama and have questions about whether alimony may be awarded, how much, and for how long, it is crucial to consult with an experienced Alabama divorce attorney.
An attorney can evaluate your unique situation, advise you on what factors may impact an alimony determination, estimate potential alimony obligations or awards, and ensure your financial rights are fully protected.
Fight Smarter, Fight Harder
If you’re facing a divorce in Alabama and have questions or concerns about alimony, seeking legal guidance from experienced divorce attorneys is crucial.
At Baxley Maniscalco, our team of knowledgeable and compassionate lawyers is dedicated to protecting your rights and ensuring a fair outcome.
Contact us today to schedule a consultation and learn how we can assist you with your alimony and divorce matters in Alabama.
Don't navigate this complex process alone. Let our expertise guide you toward a favorable resolution.