Finances

Spousal Support (sometimes referred to as maintenance or alimony) is a (typically taxed, but this changes in divorce agreements starting in 2019) transfer of funds between the parties so that they can have sufficient income to meet their needs.

What are the incomes of each of the parties?  Is the income steady, trending up or down, or variable?  Is there a need for spousal support, and if so, is there an ability to pay by the one who is being asked to provide spousal support?  Does the potential recipient spouse have sufficient assets that he/she would not need support?

How much is needed and for how long?  Will the recipient be able to begin to support him/herself in the future?  What help do they need to be able to do that?

What impact do the children have on the parents’ ability to earn income?  Is it better for the children for one parent to continue to work less than full time and to receive spousal support?

There is now legislation in Colorado that provides some guidance to the Courts on the award of spousal support, including a non-presumptive formula for the amount and the duration of maintenance.  There are numerous issues that are to be considered by the Courts when considering spousal support, and it is wise for parties to consider these issues as well, rather than just use the formula.  They include:

1. the financial resources of the recipient spouse, including the actual or potential income from separate or marital property or any other source and the ability of the recipient spouse to meet his or her needs independently;
2. the financial resources of the payor spouse, including the actual or potential income from separate or marital property or any other source and the ability of the payor spouse to meet his or her reasonable needs while paying maintenance;
3. the lifestyle during the marriage;
4. the distribution of marital property, including whether additional marital property may be awarded to reduce or alleviate the need for maintenance;
5. both parties’ income, employment, and employability, obtainable through reasonable diligence and additional training or education, if necessary, and any necessary reduction in employment due to the needs of an un-emancipated child of the marriage or the circumstances of the parties;
6. whether one party has historically earned higher or  lower income than the currently income reflected  and the duration and consistency of income from overtime or secondary employment;
7. the duration of the marriage;
8. the amount of temporary maintenance and the number of months that temporary maintenance was paid to the recipient spouse;
9. the age and health of the parties, including consideration of significant health care needs or uninsured or un-reimbursed health care expenses;
10. significant economic or non-economic contribution to the marriage or to the economic, educational, or occupational advancement of a party, including but not limited to completing an education or job training, payment by one spouse of the other spouse’s separate debts, or enhancement of the other spouse’s personal or real property;
11.  whether the circumstances of the parties at the time of the divorce warrant the award of a nominal amount of maintenance in order to preserve a claim of maintenance in the future; and
12. any other factor that are deemed relevant.