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Contents "Spousal support" is the name for alimony in California. It consists of monthly payments by a working spouse to help a dependent spouse become self-sufficient after a period of unemployment or under-employment during the marriage. How is the amount of spousal support determined? There are two types of spousal support. "Temporary" spousal support is support ordered at an initial court hearing to preserve the status quo, pending resolution of the spousal support issue at trial or by settlement. Temporary spousal support is generally calculated based on the relative net incomes of the parties. In Marin County, the formula is 35% of the obligor's net income minus 45% of the recipient's net income if child support is also being ordered. If no child support is ordered, the formula is 40% of the obligor's net income minus 50% of the recipient's net income. Determining the amount of "permanent" spousal support involves the consideration of a number of factors. The most important factor is the parties' standard of living during the marriage. Other relevant factors include the following:
Permanent spousal support can be structured as a set monthly payment, or as a series of "step-downs" to encourage the supported spouse to re-enter the workforce (e.g., $1,000 per month for the first year, $750 per month for the second year, $500 per month for the third year, etc.). Another approach is for the supporting spouse to pay rent, utilities, or car payments in lieu of spousal support. The options are limited only by the creativity of the parties and their lawyers. How long is spousal support payable? Like the amount of support, the duration of spousal support is determined by a series of factors. Spousal support is supposed to continue for a period sufficient to allow the supported spouse to become self-supporting. However, in long-term marriages (i.e., marriages lasting more than ten years) when one spouse has sacrificed career opportunities in order to stay home and raise the children, it may never be possible for the supported spouse to become fully self-supporting. In such cases, the court might "reserve jurisdiction" to award support for the rest of the supported spouse's life. In shorter marriages, it would be unusual for spousal support to continue for an unlimited period. The general guideline is that a party is expected to become self-supporting (and no longer need spousal support) within a period of time consisting of one-half the length of the marriage. Thus, in a six-year marriage, the spousal support obligation might continue for only three years. However, this is only a guideline, not a hard-and-fast rule. The court has considerable discretion in determining the duration and amount of spousal support. In almost all cases, spousal support will terminate upon the death of either party or the remarriage of the supported spouse. What are the tax effects of spousal support? Spousal support is generally tax deductible to the person paying the spousal support, and included in the taxable income of the person receiving the spousal support. (This is the opposite of the way that child support is taxed.) |
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