Alimony and Spousal Support
Does every divorce involve alimony? Do alimony payments last forever? The truth is alimony is less common than you might think. And when alimony is granted, payments are not usually permanent.
Quick Guide: What is Alimony? | How does Alimony work? | Why does Alimony exist?
What is Alimony?
Alimony is a term that describes payments by one spouse to support the other during or after a divorce. Alimony paid while a divorce is in progress is sometimes called “temporary” alimony.
Alimony vs. Spousal Support
Alimony and spousal support are the same. “Alimony” is an older term that originated in England. Both terms refer to payments by one spouse to support the other during or after a divorce. State laws use different terms to describe these payments. Florida and New York use the word “alimony.” Alimony in California and Virginia is known as “spousal support.” Texas and Arizona refer to these payments as “spousal maintenance.”
Alimony vs. Child Support
Alimony and child support are not the same. Alimony and child support both could be required after a divorce, but child support has a different purpose than alimony. Child support is intended to benefit a child. After a divorce, a spouse may have to pay alimony, child support, both, or neither.
How does Alimony work?
Alimony payments are determined during a divorce proceeding. In some cases, spouses may negotiate and agree to alimony payment terms. In other cases, a judge will decide alimony terms.
Who pays Alimony?
In a divorce, the spouse with a higher income or ability to pay may have to pay alimony. Historically, alimony described payments from a divorced husband to a wife. Today, alimony can be awarded to any spouse, regardless of gender.
How much Alimony is typical?
The average amount paid by an American alimony payer is about $22,000 per year or $1,833 per month. Based on data in a 2019 report from the U.S. Department of the Treasury, about 600,000 Americans pay about $13 billion in combined alimony, annually. Since there are about 800,000 divorces in the United States every year, it’s clear that not all divorces result in alimony payments.
The average alimony payment cannot be used to predict alimony payments in any specific divorce. Payment amounts are dependent on the unique circumstances of each marriage. There is no formula to determine alimony payments. Online alimony calculators can only provide rough estimates. Some states do use formulas to determine temporary alimony, but no states use formulas for ordinary alimony.
How is Alimony calculated?
Courts in different states consider different factors in determining alimony terms. Most states consider:
Length of the marriage
Each spouse’s income
Each spouse’s future financial prospects
Each spouse’s health
How long does Alimony last?
Alimony can last a few months to several years. “Permanent alimony,” lasts until the recipient remarries or either spouse dies. This type of alimony is becoming increasingly rare in the United States. In the 2010s, many states enacted alimony reform to limit awards of permanent alimony.
Is Alimony taxable? Who pays taxes on Alimony?
Alimony payers who divorced before January 1, 2019, deduct alimony payments from their taxable income. Alimony recipients who divorced before January 1, 2019, include alimony in their taxable income. For couples that divorce after January 1, 2019, alimony is not deductible from the payer’s income or included in the recipient’s income.
Why does alimony exist?
Alimony originated in England in a time when married women did not have property rights. Also, women did not have access to employment. Because of these limitations, divorced women had no means to support themselves. Alimony was necessary to ensure divorced women had enough money to live.
Today, alimony is available to any spouse, regardless of gender. Some people argue that alimony is no longer necessary because people of all genders can now work and own property.
