Understanding Alimony or Spousal Support in Divorce

What is Spousal Support?

Spousal support, also known as alimony, is financial assistance that one spouse may be required to pay to the other after a divorce. Its purpose is to help the lower-earning or non-earning spouse maintain a standard of living similar to what they had during the marriage. However, it’s important to note that spousal support is included in only about 10% of uncontested divorces. Most couples either agree that spousal support isn’t necessary or find that both parties are financially independent enough to forgo it.

How is Spousal Support Different from Child Support?

• Purpose: Spousal support is intended to support an ex-spouse, while child support is designed to cover the needs of the couple’s children, including housing, food, education, and other necessary expenses.

• Duration: Child support generally continues until the child reaches a certain age, usually 18 or 21, depending on the jurisdiction. Spousal support may be temporary or permanent, depending on the circumstances.

• Modification: Child support is often easier to modify based on changes in the child’s needs or parents’ financial situations. Spousal support modifications depend on the original agreement and the court’s ruling.

Factors to Consider When Including Spousal Support in a Marital Settlement Agreement (MSA)

When deciding whether to include spousal support in your MSA, consider the following factors:

1. Amount of Support:

   • How much will be paid?
   • The amount is typically based on the length of the marriage, the financial needs of the recipient, and the payer’s ability to pay.

2. Frequency of Payments:

   • Will payments be made monthly, quarterly, or annually?
   • Establishing a clear payment schedule is essential to avoid confusion and ensure consistent support.

3. Payment Method:

   • How will the support be paid? Options might include direct deposit, checks, or electronic transfer.
   • This should be specified to avoid disputes later.

4. Consequences of Non-Payment or Late Payment:

   • What happens if the payment is not made on time?
   • Late payments could result in interest charges, wage garnishment, or other enforcement actions. It’s important to include these provisions to protect the recipient.

5. Termination Conditions:

   • Under what circumstances will spousal support end?
   • Common conditions include the remarriage of the recipient, the death of either party, or a specified period (e.g., 5 years of support). Some agreements also include a provision for termination if the recipient cohabitates with a new partner.

6. Modification of Support:

   • Can the support amount or duration be changed?
   • Spousal support can sometimes be modified due to changes in circumstances, such as significant changes in income or financial needs. It’s important to outline the conditions under which modifications are allowed.

7. Tax Implications:

   • How will spousal support affect your taxes?
   • Under current U.S. tax law, spousal support is no longer tax-deductible for the payer, nor is it considered taxable income for the recipient (for agreements executed after December 31, 2018). Parties cannot alter this tax treatment by agreement, as it is mandated by federal law.

8. Duration of Support:

   • How long will the support last?
   • Consider whether the support is temporary (rehabilitative) to help the recipient gain financial independence or permanent until a specific event occurs.

9. Impact on Other Financial Agreements:

   • How will spousal support interact with other financial agreements, such as the division of property or retirement benefits?
   • Ensure that the spousal support agreement aligns with other financial aspects of the divorce to avoid conflicts.

10. Legal Enforceability:

    • Ensure that the spousal support terms are enforceable under local law.
    • It’s advisable to consult with a legal professional to ensure the MSA complies with jurisdictional requirements.

Why You Need an Experienced Attorney

Spousal support agreements are complex and require careful consideration of various legal, financial, and personal factors. It is crucial that this complicated agreement be prepared by an experienced attorney to ensure it is fair, enforceable, and compliant with the law. At Guam Fast Divorce, our attorneys have extensive experience in drafting spousal support agreements andcan guide you through this process with the expertise needed to protect your interests.

GFD will include a professionally drafted Support agreement in your uncontested divorce for $200.

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