SmartAsset: Alimony vs. Spousal Support
One issue that couples often struggle with during the divorce process is financial support. Both parties can work together to reach an agreement on alimony or spousal support, or in contentious divorces, a judge can decide. Is there a difference between alimony and spousal maintenance? No, but it’s important to understand what these terms mean when you’re getting divorced.
A financial advisor can help you create a post-divorce financial plan that meets your needs and goals.
What is alimony?
Alimony is an obsolete term that refers to money paid by one spouse to the other following divorce proceedings. If two married people get divorced, one can ask the other for financial support. For example, if one spouse stayed home to raise children while the other worked, they might ask their ex-spouse to continue to support them after the marriage ended.
State divorce laws may designate these payments as alimony. It should be noted that alimony is not just alimony. Palimony is a term used to describe money paid by one partner to another in situations where two people lived together but were not married.
Traditionally, alimony payments were referred to as payments from an ex-husband to an ex-wife. However, this view does not take into account situations in which a wife supports an ex-husband or divorce cases involving same-sex couples. For this reason, the term spousal support is increasingly being used in place of alimony in divorce proceedings.
Is there a difference between alimony and spousal support?
There is no difference between alimony and spousal support in terms of what this means for the parties paying and receiving it. Spousal support is a neutral term that makes no assumptions about the sex or sex of either of the spouses involved.
Whether financial support in a divorce proceeding is referred to as alimony or spousal support may depend on the terminology used in state divorce laws. State laws define alimony, or spousal support, and the circumstances under which it may be paid.
The story goes on
If the code defines alimony, it may do so in the context of fault. If a spouse is found to be “at fault” for the termination of the marriage, for example because of cheating, this can open the door for the court to enforce higher alimony payments. In this sense, alimony payments become a means of punishment.
Spousal maintenance, on the other hand, requires that a spouse continues to be dependent on financial help after the marriage has ended. It takes into account each spouse’s income and their opportunities to make money after a divorce. There is no conjecture as to what a spouse did or did not do to make the marriage fail.
How is spousal support or alimony determined?
SmartAsset: Alimony vs. Spousal Support
When and how spousal support or alimony is paid depends on which state a divorce is initiated in. If state law allows both spouses to reach an amicable settlement of spousal support, they can do so through their attorneys. In Texas, for example, spouses who are divorcing can voluntarily enter into spousal support agreements. Texas courts do not issue orders compelling someone to pay child support.
On the other hand, it can be left to a judge to decide whether to award alimony or spousal support. When a judge is responsible for deciding whether to award spousal support or alimony, he or she may consider a number of different factors. For example, you can consider:
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What led to the end of the marriage (in debt states)
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Each spouse’s income and financial contributions during the marriage
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Non-financial contributions (eg, childcare or emotional support while the other spouse pursues higher education or career)
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Earning potential of each spouse and how long it might take an unemployed spouse to find employment
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How long the marriage lasted
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Property allocated to each spouse
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Each spouse’s expected expenses after the divorce is finalized
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Age and health of both spouses
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Financial need on behalf of the recipient spouse
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Ability to pay on behalf of spouse expected to provide support
Some states use a specific formula to calculate alimony, while others do not. If there is no standard calculation, the judge may, in its sole discretion, determine a reasonable amount.
In addition to ruling on the award of spousal support and the amount a spouse is required to pay, a judge can also set conditions for the duration of the alimony payments. For example, the judge may determine that the support should continue until the beneficiary spouse remarries. Or there is a five-year cap on support payments.
As soon as alimony or spousal support payments are ordered by the court, the paying spouse is obliged to make these payments on time. If someone doesn’t pay, they can be fined, imprisoned, or both, depending on what state they live in and how spousal support laws are enforced.
Alimony vs. Spousal Support vs. Child Support
Alimony and spousal support are paid to a former spouse for their financial needs. Child support is another type of domestic support that can be negotiated during divorce proceedings.
Child support is usually paid to the parent who retains physical custody of the child or children of the marriage. So if a child lives with one parent Monday through Friday and spends the weekends with the other parent, the parent who is only available on weekends may have to pay child support.
Broadly speaking, child support is intended to be used to meet the child’s basic needs such as housing, food, education and health care. State law typically requires child support to continue until the child turns 18 or graduates from high school, whichever is later. Some states require support to continue until the child graduates from college.
Each state has a set formula for calculating child support payments. Generally, it is based on the time the child spends with each parent and each parent’s income. State laws may allow parents to request adjustments to child support after a court order if their income or living situation changes significantly.
Similar to spousal support or alimony, failure to pay child support can lead to legal action. Non-paying parents can be fined, imprisoned, or both until the child support arrears are paid.
bottom line
SmartAsset: Alimony vs. Spousal Support
There is no difference between alimony and spousal support as far as the respective benefits are concerned. If you are going through a divorce and think you may need financial help, you can apply for alimony or spousal support from your ex-spouse. A good attorney or divorce financial advisor can show you what to expect if you plan to request either type of assistance.
Financial planning tips
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Consider talking to your financial advisor about what paying or receiving spousal support might mean for your overall financial plan. SmartAsset’s free tool puts you in touch with up to three financial advisors operating in your area and you can interview your matching advisors for free to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.
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The Tax Cuts and Jobs Act 2017 eliminated a tax deduction for spousal alimony and also removed the requirement for spouses to report alimony received as taxable income. So if you divorced on or after January 1, 2019, you don’t have to worry about the tax implications of spousal support. However, you may want to speak to a tax professional about how best to minimize your tax liability if your financial situation changes significantly after a divorce.
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