Alimony (Spousal Support) Calculator
Estimate potential spousal support payments based on the AAML formula.
Note: This is a general estimate based on the AAML formula. State-specific laws vary significantly.
Understanding Alimony and Spousal Support
Alimony, also known as spousal support or maintenance, refers to court-ordered payments made from one spouse to another after a divorce or legal separation. The primary purpose of alimony is to mitigate any unfair economic effects caused by a divorce, such as providing for a non-wage-earning or lower-wage-earning spouse.
How This Alimony Calculator Works
This calculator utilizes a formula suggested by the American Academy of Matrimonial Lawyers (AAML). While every state has its own specific guidelines (or lack thereof), the AAML formula provides a standardized benchmark for negotiations. The formula generally calculates alimony as 30% of the payor's gross annual income minus 20% of the payee's gross annual income.
Realistic Example:
Imagine a marriage that lasted 10 years. Spouse A earns $100,000 annually, while Spouse B earns $40,000.
- Calculation: (30% of $100,000) – (20% of $40,000)
- Math: $30,000 – $8,000 = $22,000 per year.
- Duration: Usually 50% to 80% of the marriage length, depending on local statutes.
Key Factors Influencing Alimony
- Duration of Marriage: Longer marriages typically result in longer alimony periods.
- Standard of Living: Courts often attempt to keep both parties close to the lifestyle enjoyed during the marriage.
- Earning Capacity: The educational background and job skills of each spouse are evaluated.
- Age and Health: Physical and emotional health can impact the ability of a spouse to work.
- Child Custody: If a spouse cannot work because they are caring for a child with special needs.
Types of Spousal Support
Alimony is not always permanent. There are several categories depending on the situation:
- Temporary Alimony: Paid while the divorce process is ongoing.
- Rehabilitative Alimony: Provided while the lower-earning spouse acquires education or training to become self-sufficient.
- Durational Alimony: Set for a specific period (e.g., 5 years).
- Permanent Alimony: Continues until the death of either spouse or the remarriage of the recipient (common in very long-term marriages).
Is Alimony Taxable?
Under current US federal law (Tax Cuts and Jobs Act of 2017), alimony payments for any divorce finalized after December 31, 2018, are not tax-deductible for the payer and are not considered taxable income for the recipient. It is crucial to consult with a tax professional regarding your specific jurisdiction.