what is alimony
Alimony is a court-ordered sum that a former spouse is required to pay to another as a result of a separation or divorce settlement. You may sometimes hear spousal support or spousal support, which are other terms for alimony. This typically occurs when the court rules that the lower-income earner has acquired the right to a minimum standard of living from the higher-income earner.
You can work with a financial advisor to help you pay or receive child support by creating a financial plan.
What is alimony?
Alimony is a fixed amount of money paid by one person to another as a result of separation or divorce. Alimony is the result of a court order when one partner has a higher earning capacity than the other. A judge may not order alimony if the marriage was brief, e.g. B. less than a year.
The goal of alimony is to support the low-income ex-spouse and help him maintain his standard of living. It’s not usually permanent, although in some cases it can be. Child support is not the same as child support. While the former financially supports the former spouse, the latter helps support a child. When a former spouse pays child support, those payments usually end when the child turns 18.
How does alimony work?
what is alimony
In general, the amount of maintenance payments depends on the length of the marriage and the difference in income between the two partners. For example, an 18-year marriage in which one partner made six figures and the other had no income can result in significant alimony payments.
Alimony can work in a number of ways. As a rule, one party makes alimony payments every month. However, payments can also be made weekly or bi-weekly. Either the two parties or the court decide on the settlement of the maintenance payments.
Child support payments usually last until one of the following conditions is met:
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The dependent ex-spouse remarries.
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An end date specified in the court order has been reached.
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A judge finds that the ex-spouse receiving payments has not made a satisfactory effort to become independent.
The story goes on
In some cases, the court may order alimony payments to continue for life or until the spouse who receives payments remarries. However, this is usually reserved for marriages that have lasted a long time, e.g. B. 20 years or more. Of course, if one of the spouses dies, the maintenance payments end.
Who pays maintenance?
People sometimes think that alimony is something a man pays a woman when they are going through a breakup or divorce. However, this is due to the role of the man as breadwinner in a traditional marriage and the woman as caretaker. While these roles often still apply to a large extent, the difference in income between the two parties decides who pays alimony.
In other words, it’s entirely possible for a woman to take on alimony if she earns more than her male partner. However, judges can also consider future earning potential, so one party earning more than the other may not guarantee that they will have to pay alimony.
For example, if a woman currently earns more than her ex-husband but is pregnant and unable to work in the future, she could end up receiving alimony from her ex-spouse. Every situation is unique, so no guesswork should be made as to who will be paying child support and for how long.
What happens if alimony is missed?
Alimony can be a lifeline for someone who would otherwise be in a very difficult financial situation. However, it is not a perfect system. There is always the possibility that the debtor will miss a payment. Unfortunately, there may not be a major enforcement mechanism in this case. the one expecting to receive child support payments may not have much recourse.
It is possible for the person who is owed payments to file a lawsuit against their ex-partner. However, this process is often expensive and takes time. In the meantime, they can be left with bills they can’t pay.
But there are generally few options other than to sue. It is therefore particularly important for the maintenance recipient to get back on his feet as quickly as possible. This is often easier said than done, but it is often the best way to protect your child support recipient.
The final result
what is alimony
Alimony is a court-ordered amount of money paid by a former spouse to another as a result of a separation or divorce. Generally, alimony is ordered when one party is of greater earning power than the other and the marriage has lasted a long time, e.g. B. 10 years or more. However, the amount of the payments may vary depending on the length of the marriage and the size of the income gap. Payments usually end based on a certain criterion, e.g. B. a court-determined end date or the remarriage of the alimony, but each situation is unique and depends on the competent judge.
Financial management tips
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Like everything in life, money can be difficult during a breakup or divorce. However, a financial advisor can help you make the right choice. A financial advisor can help you put together a strategy to help you achieve your goals. And finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool connects you with up to three financial advisors based in your region. Plus, you can poll your advisor matches for free to help you 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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Child support payments can help someone with little or no income make ends meet. However, alimony payments are not guaranteed, and someone receiving alimony can find themselves in a difficult position if their ex-spouse does not pay. While achieving financial stability is not always easy, it can help you avoid these difficult situations.
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The post What Is Alimony: Financial Guide for Divorce first appeared on the SmartAsset Blog.
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