Tag Archive for: alimony

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What is alimony, maintenance, and spousal support? You need to know this if you’re facing divorce.

The official definition of divorce states that divorce is the legal dissolution of a marriage relationship. When parties are married for a significant period of time, a spouse may seek spousal support. This spousal support payment is often referred to as “Alimony” by the IRs and is called “Maintenance” under Wisconsin law.  In other words, on top of all the emotional turmoil, a party may also be required to support his or her spouse with payments known as alimony or maintenance. 

Alimony or Maintenance may be required under a court order or by the couple’s agreement after divorce or even while a divorce case is still pending.  This can either be frustrating or relieving, depending on your financial situation.  But beyond the emotions, the court has framed the concept of alimony/maintenance to ensure that both parties are treated equitably. That’s where the role of top-rated divorce lawyers comes into play, bringing the legal experience and technology to the courtroom. 

Here, we will look at general types of spousal support, and consider some of the factors that play a key role in determining the amount of maintenance that is ordered. 

Types of Alimony Support

There are three types of alimony support:

  • Temporary maintenance 
  • Short-term maintenance 
  • Indefinite maintenance 

Temporary alimony 

Temporary alimony is the amount one spouse pays to the other until the divorce is final. The amount of Temporary maintenance is usually determined by a family court commissioner and is subject to review by a circuit court judge. The amount of temporary maintenance owed might be more or less than the amount ordered after the matter is finalized. 

Short-term or Rehabilitative support

Short-term maintenance is sometimes referred to as rehabilitative support. It is often thought of as the amount one spouse pays to the other to help the recipient spouse make the transition to supporting themselves. Often this is awarded when a spouse has invested significant time in raising children or has reduced education or fewer work opportunities.

Indefinite support

Indefinite support is the amount one spouse pays to the other for an indefinite term such as remarriage or death. It is ordered as part of the final divorce judgment. Often indefinite support is awarded when a couple was married for a long time (i.e.  >25 years). 

If you have any doubts related to the types of spousal support, you can get in touch with our top-rated divorce attorneys in Milwaukee to get experienced legal advice. 

What Are the Factors That Play a Key Role in Determining Alimony Support?

The purpose of alimony is to ensure that both spouses are able to maintain the reasonable standards of living as they had before the divorce. The court takes various factors into account while determining the maintenance. Let’s have a look at some of the important factors that the court will consider: 

  • The length of the marriage
  • Each spouse’s age and physical/emotional health
  • Educational levels of each party 
  • The couple’s standard of living
  • The earning capacity of the party seeking maintenance, including educational background, training, employment skills, work experience, length of absence from the job market, custodial responsibilities for children, and the time and expense necessary to acquire sufficient education or training to enable the party to find appropriate employment.
  • The feasibility that the party seeking maintenance can become self-supporting 
  • Any other factors that the court determines to be relevant. 

How to Avoid a Court Trial on Alimony?

The court trial means that you were unable to reach an agreement with regard to an equitable maintenance award.  As a result, you are at the discretion of the judge for the decision-making on the amount and term for an equitable maintenance order. The best way to avoid a court trial on spousal support is to hire the best divorce attorney in your area. Your attorney will calculate the amount of spousal support while considering the tax consequences to both spouses. If needed, our divorce attorney knows reputable vocational evaluators that can be utilized for expert advice regarding your spouse’s earning capacity. Our divorce attorney is a Certified Divorce Financial Analyst and has been repeatedly nominated for awards including, Super Lawyers, US News & World Report’s Best Lawyers, and National Academy of Family Lawyers. Attorney Magner also has a 10.0 rating on Avvo and is Lead Counsel Verified by LawInfo. 

Need help with calculating maintenance in your Divorce or Legal Separation? Get in touch with Magner and Hueneke LLP and our top-rated divorce attorneys in Milwaukee, Wisconsin.  

More common for wives to pay alimony

Wisconsin residents might be interested to hear that it is becoming more common for wives to be ordered to pay alimony to their ex-husbands in divorces. Husbands and wives do not necessarily have the stereotypical marriage arrangements that they used to have in the past. Traditionally, wives stayed at home while the men were the primary breadwinners. Now, however, wives may be the primary breadwinners, or both spouses may earn income equally.

Alimony was originally designed to allow the spouse who stayed at home to care for the home and children to continue living in the lifestyle he or she had become accustomed to. Traditionally, the woman was the one who received alimony from her husband during a divorce. With studies reporting that over 40 percent of the wives who work earn more than their husbands, that trend is beginning to shift. This makes it so that some husbands are, in fact, receiving alimony from their wives rather than the other way around.

Experts say that many women, like men, do not like having to pay alimony to their ex-husbands. This is especially so in cases where both the husband and the wife worked, but the wife simply earned more than the husband. Some people are advocating for the removal of alimony altogether in an attempt to make divorces as de-genderized as marriages are becoming.

Family law lawyers may be able to help people who are going through the divorce process ensure that they receive a divorce settlement that is in their best interest, and they may be able to help a couple negotiate issues such as alimony, property division, child custody, child support and other divorce matters throughout divorce proceedings.

Source: TIME Ideas, “The De-Gendering of Divorce: Wives Pay Ex-Husbands Alimony Too Read more: http://ideas.time.com/2013/05/16/the-de-gendering-of-divorce-wives-pay-ex-husbands-alimony-too/#ixzz2TrG4sEau“, Liza Mundy, May 16, 2013

What is the future of alimony?

Wisconsin residents who divorce may no longer have to pay or receive alimony in the future, and if they do, it may be under completely different circumstances. In the last few years, the idea of eliminating or changing the way alimony works has gained ground. While the goal of alimony is to ensure that a husband or wife who sacrificed their career to take care of their family are still taken care of in the event of a divorce, many say the process is unfair and sometimes even abused.

In some cases, court ordered alimony can require an individual to pay for the rest of their life if their ex-spouse does not remarry. Additionally, extenuating circumstances, such as infidelity or substance abuse problems, are not always taken into consideration when people are being ordered to pay alimony. This is why many advocates are urging reforms that could limit the duration of alimony and add flexibility to the decision making process.

Still, not everyone is in favor of these changes. Opponents believe that changing the way alimony works could harm women because they are often the ones who end up staying at home and taking care of children instead of pursuing a career. Those who are against changes are also concerned about formulaic mandates that would keep judges from being able to make appropriate changes to court ordered alimony during a divorce.

Individuals who are going through a divorce will want to ensure that asset division and alimony payments are decided equitably. A lawyer could help someone understand state laws and their potential impact.

Source: MainStreet.com, “Is This the End of Alimony?”, Cheryl Lock, July 01, 2013

Prepare financially for life after divorce

People in Wisconsin who have recently gotten a divorce might be wondering how they are supposed to readjust their finances to fit their new post-divorce lifestyles. There are numerous steps that individuals can take to prepare themselves for life after divorce financially. The first thing that they should do, however, is consider whether or not they will be getting any alimony in their divorce.

Alimony is extremely important to some people after they are divorced, especially if they didn’t work throughout their marriage. Alimony might be their primary support system after their divorce. However, they might want to consider planning for how they’re going to budget their finances if they don’t get lifelong alimony since many states are considering making reforms to do away with lifelong alimony and make payments last for a shorter duration.

People who do receive alimony payments might consider using those payments to subsidize their primary incomes. Additionally, they might use their alimony to fund additional education to get into a better career. People might also adjust their budgets by downsizing their homes; chances are that they don’t need as much room as they did before, and downsizing may help them cut utility and maintenance costs too. They should also consider adjusting their budget for their new lifestyle as their income might be less, and getting rid of any non-essential expenses could close the gap. Additionally, people should consider saving money to ensure that they are protected in the event of an emergency.

Family law attorneys may be able to help couples negotiate tough issues like alimony in their divorce proceedings. They might also help them figure out how to equitably divide up their marital assets and negotiate issues such as child custody and support.

Source: Fox Business, “How to Financially Readjust for Post-Divorce Life“, Andrea Murad, August 02, 2013

Taking advantage of social media during divorce

Social media can help or hurt either party in a divorce in Wisconsin, especially if they air private matters that are best left out of the public eye. However, experts are finding that different social media sites can actually help people who are ending their marriages.

First, social media can help someone going through a divorce find quick access to a number of resources, ranging from an overview of ending a marriage, child custody issues and finding lawyers. People can also find information on talking to kids about divorce, handling health insurance and what properties count as marital assets in their jurisdiction. They can check out the reputation of those they plan to hire to navigate through the divorce, such as lawyers, counselors or financial planners. Family mediators also help clients save money when negotiating a variety of issues with their soon-to-be ex-spouse, which in turn leads to less overall stress.

Second, when a parent doesn’t see their children on a daily basis, they can contact them via social media. They can communicate regularly apart from scheduled visitation. This applies even more to someone who works in another state or nation, whether military personnel or at a corporate job. Parents can set up a family site specifically to communicate with their child or just “friend” them on social media. They can look at pictures, keep up with their child’s friends and keep tabs on daily thoughts and activities. Parents can even set up visitation via some social media sites and talk about their activities.

During the break-up of a marriage, people might wonder where to find reliable information on proceeding with a divorce. A family attorney might be able to help clients work out issues, such as alimony and child custody.

Source: Huffington Post, “Can Social Media Be Your Friend During a Divorce?“, August 20, 2013

Infidelity and divorce

Allegations of infidelity have sounded the death knell for many Wisconsin marriages. While some spouses may be willing to forgive an indiscretion, others are unable to move beyond the negative emotions and hurt caused by a spouse’s unfaithful behavior. In those cases, divorce may be the only option. However, infidelity may not play any role in a divorce proceeding depending upon state law.

Many states have no-fault divorce laws, and a spouse who is seeking a divorce need not prove that the other spouse did anything wrong to cause the marriage to end. In most such states the court will not consider a history of infidelity or other bad behavior by one or both spouses in determining issues such as property division, child support or alimony.

In many no-fault states the court will base child support on statutory guidelines that consider the parties’ incomes and the children’s physical placement, not who was to blame for the marriage’s demise. In determining whether to award spousal support, the court will look at factors such as the length of the marriage and earning capacity of the parties, not whether one party was unfaithful. However, if a spouse’s bad behavior affects or endangers the well-being of the children, the court may factor it into its consideration of a child custody dispute.

Someone contemplating a divorce may wish to speak with an attorney that is experienced in family law matters. The attorney may be able to negotiate and prepare agreements relating to such matters as property division and spousal support. If there are children from the marriage, the attorney may be able to provide advice and counsel on such issues as child support and visitation rights.

Source: HuffingtonPost, “A Cheating Heart and Its Role in Divorce“, Caroline Choi, October 01, 2013

Divorce settlement means hard work for John Cleese

Wisconsin residents who follow celebrity divorces may be interested in John Cleese’s divorce settlement with his third wife. In 2008, Mr. Cleese and his wife, Alyce Faye Eichelberger, divorced. The couple agreed to the terms of their divorce settlement in 2009 that allegedly specified that his wife would receive $13 million in marital assets and cash as well as almost $1 million a year until 2016. The 16-year marriage between John Cleese and his wife, who is a psychotherapist, was childless.

Mr. Cleese, who has since remarried a woman 31 years younger than himself in August 2012, spoke about the financial difficulty a divorce may precipitate. Mr. Cleese, 74, said a great deal of hard work was necessary for him to meet the demands of spousal support obligations. He states that his choice of projects is dependent, in part, on earning enough to pay alimony, and he even named one project “The Alimony Tour.” He also suggested that his income from past projects, such as his time with “Monty Python,” was not sufficient to meet these current obligations. Cleese said that selling property was necessary and now owns just one from the original five owned during his marriage.

In Wisconsin, spousal maintenance may be required temporarily or permanently, depending on the differing circumstances of each couple. Determinations regarding such payments include factors such as the length of the marriage, the income of the involved parties and the earning capacity of the parties.

When couples divorce, alimony considerations are just one of many issues that parties may face. As Mr. Cleese’s case shows, the effects of divorce agreements may affect the long-term financial futures of both individuals. A family law attorney may be able to help couples reach an agreement that is equitable and provides support for all the parties involved.

Source: The Huffington Post, “John Cleese’s Alimony Payments Are No Laughing Matter“, January 31, 2014

Divorce may have outsize impact on couples’ tax status, liability

Wisconsin couples both married and unmarried may know that marital status has an effect on the taxes they have to pay. A wedding means it’s time for a change in their tax situation, but so does a divorce. Filing status may be the first change that comes to mind when thinking about how life events affect one’s tax burden, but sharing expenses and income as a married couple can have a large impact at tax time.

Financial planning experts frequently offer tips to taxpayers trying to figure out their new obligations to the Internal Revenue Service. They suggest what some may already know: Filing status is important for figuring one’s tax burden, possible exemptions and credits such as the one for earned income. Whatever a taxpayer’s marital status is at 11:59 p.m. on Dec. 31 of the year for which the return is being filed is that person’s status for the entire year. Until a divorce is final, each spouse still falls into the “married” column.

Being married or single isn’t the only filing status; should a household include a qualifying dependent, a single person can file as the “head of household.” When it comes to married couples, choosing to file a joint return means that each spouse shares equally in any tax liability imposed by the IRS. Married people can choose to file as “married filing separately” to avoid this commingling, but doing so may take away eligibility for certain credits as well as expose each spouse to higher tax rates.

Filing for divorce is just the first official step in dissolving a marriage. Important divorce legal issues such as property division, alimony and child support may still need resolution. Family law attorneys may be able to help divorcing spouses access resources that could contribute to an outcome agreeable to all parties as well as represent divorcing spouses in court proceedings as needed.

Source: Yuma News Now, “How Marriage And Divorce Can Impact Your Taxes”, April 05, 2014

Divorce and division of property

Wisconsin residents may be familiar with a major aspect of divorce, the division of real estate. Numerous scenarios can present themselves when a divorce occurs. If a spouse wants to stay in the house and the vacating spouse wants the initial down payment returned, the property can be refinanced to come up with the money. If a house was purchased with a down payment of $100,000 and if only $60,000 can be raised to buy out the spouse because of a decrease in property value, one option is to make up the difference with gift funds, coming from family in most instances.

If a spouse is attempting to buy a house, and the spouse and ex are still legally married, a spouse can release interest in the transaction by signing a quit claim deed. As in most conflicts, keeping the lines of communication open between spouses means that amicable settlements are more likely to ensue.

It is important to monitor credit reports and make sure that debts fairly represent what is owed by each spouse. When there is much acrimony in a divorce, it may be advisable to consult an attorney. A divorce settlement has a long-term effect on a relationship and family, and even extended family, so in most cases, it is best to secure representation.

There is more to divorce than the division of property, and each divorce is unique. Rather than risk a fair and equitable settlement, a family law attorney can assess each element of the case and provide guidance. When there are alimony and child custody concerns, many assets, out of state property and pension plans, an attorney can assist a client to obtain the best settlement terms.

Source: Credit.com, “How to Divide Your House in a Divorce“, Scott Sheldon, July 09, 2014

Keeping the costs of a divorce down

Divorce can be an expensive endeavor for many Wisconsin couples whose marriages are ending, but there are ways to keep the costs under control. While individuals often do not have much control over their attorney’s average hourly rates, they can control how much work they ask the attorney to do. Keeping the billable hours down will result in a more affordable divorce. The key is learning what to have the lawyer handle and when to let things go.

One of the biggest mistakes made by individuals is getting caught up in the tiny details and trying to micromanage the parenting decisions made by the ex-spouse. Arguing over minor details like exact soccer time practices will only lead to a higher divorce bill. When a couple is able to come to agreements on these minor details on their own, then the overall cost will fall.

As individuals treat other with honesty and fairness, the amount of items that must be discussed in court and reviewed by attorneys decreases. In one reported case, a man’s attempt to avoid paying his wife spousal support resulted in roughly $300,000 in legal fees, and the wife was still eventually granted alimony. Agreeing to spousal support from the outset could have saved the man a great deal of time and money.

When dealing with such matters as property division, child custody and support arrangements, an attorney can help a client in negotiating an agreement with which both parties are in accord. Legal counsel can provide valuable guidance throughout the process and help clients avoid mistakes. The clients can in turn keep costs down by being more flexible and reasonable when working through the divorce process.

Source: CNBC, “How to get divorced without breaking the bank”, Susan Caminiti, Feb. 9, 2015