[co-author: Meghan Trentz – Summer Associate]
Under Iowa law, alimony, also known as spousal support, refers to financial support provided by one spouse to the other following a divorce or separation. It addresses the economic inequality that can arise when one spouse has significantly less income or financial resources than the other. Alimony ensures that both spouses can maintain a decent standard of living after a divorce or separation.
In Iowa, alimony is determined based on various factors, including the length of the marriage, the contributions made by each party during their marriage, each person’s earning capacity, their respective financial needs, and the standard of living achieved during the marriage. There are four types of alimony available to spouses:
- Traditional
- refund
- rehabilitation
- transitional
Traditional
Traditional alimony is “payable for life or as long as the spouse is unable to support themselves”. This type of maintenance is usually granted when there is a physical disability or advanced age combined with a lack of education or professional skills that make it impossible for the spouse to earn a living. In the Marriage of Gust case, the court found: “Our case law shows that the length of marriage is an important factor in the granting of traditional spousal maintenance rights…(which)…are often used in long-term marriages in which living habits are largely fixed.” are.” and the “earning potential of both spouses can be predicted with some degree of reliability.”
Traditional alimony is also more common where the parties have agreed during the marriage that one spouse will stay home to raise the children. After a divorce, the economic consequences of being absent from the labor market can be significant.
A ‘needs and ability assessment’ focuses on the spouse’s earning capacity and whether there are significant differences in earning capacity, not necessarily income levels. In general, a marriage of 20 years or more is considered the minimum length of traditional maintenance.
refund
Unlike traditional alimony, which is usually given to maintain a standard of living, alimony applies to cases where one spouse supports another in an endeavor that would result in future earning capacity for the supported spouse. A court case in Iowa defined alimony payment as “based on economic sacrifices made by one spouse that directly enhance the future earning capacity of the other spouse.”
In Iowa, the amount and duration of alimony is determined based on various factors, including the length of the marriage, the financial needs of both parties, and the economic impact of the supported spouse’s educational or career advancement. As a rule, the maintenance reimbursement is limited in time until it has been paid in full. Due to the personal nature of the claim and tax laws, this type of alimony usually cannot be changed or canceled until full compensation is obtained.
rehabilitation
The third type of alimony is rehabilitating alimony. The court has previously indicated that its intention is “to assist an economically dependent spouse during a limited period of postdivorce re-education or retraining, thereby providing incentives and opportunities for that spouse to support themselves.”
A large income gap and a party’s long absence from the labor market are reasons for granting rehabilitation support. This alimony represents a temporary aid and supports the recipient spouse’s efforts to become economically independent. The court may periodically review the progress of the rehabilitation plan to determine if further financial assistance is needed. This means that the financial support is sometimes temporary or extended over a longer period of time, depending on the needs of the dependent spouse.
transitional
The final type of alimony in Iowa is transitional alimony, recognized in 2022. This type of alimony payment is usually appropriate when a spouse has left economic opportunities and needs time to prepare to start working life. This type of alimony stems from the need for some type of support where the recipient spouse may already be able to support themselves at the time of dissolution, but due to economic and situational circumstances may require short-term support in the transition from marital status to Single status requires consequences of dissolution.
Transitional maintenance helps to cover the costs of moving house, vocational training and/or starting a new household. The key consideration for this award is whether the receiving party has sufficient income and/or cash to transition from married life to single life without undue hardship. The transitional maintenance is limited in time and is intended to provide support during the transitional phase after the divorce.
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