How Is Spousal Support Calculated in PA?
If the court decides to issue an order for spousal support, the amount of the payments will be calculated by using a mathematical formula.
- The difference in the parties' net incomes is multiplied by 30%, if there is already a child support order in place.
- The difference in the parties' net incomes is multiplied by 40%, if there is no child support order currently in place.
- The resulting number is the amount that the higher-earning spouse will be ordered to pay.
Beyond the basic calculation, courts may consider additional factors that justify deviating from the standard formula. These factors include the standard of living established during the marriage, each party's financial responsibilities, and other relevant elements. Courts have discretion in these matters, making it vital to present comprehensive and persuasive arguments. Our attorneys work closely with clients to develop evidence-backed strategies tailored to highlight their unique financial contexts.
Alimony Pendente Lite (APL) Overview
An order granting Alimony Pendente Lite (APL) requires the higher-earning spouse to make periodic support payments to the financially dependent spouse during the divorce proceedings. A financially dependent spouse can ask the court for APL any time after a complaint in divorce has been filed but before the divorce is finalized. The main purpose of this type of support is to "even out the playing field" and to ensure that the financially dependent spouse has enough money to litigate the divorce. Because APL is founded on this purpose, the order will only last until the divorce is finalized. To continue receiving support payments, the financially dependent spouse would have to ask the court for alimony (see below).
Understanding the strategic use of APL can fundamentally change the course of divorce litigation. For example, the presence of APL can affect the willingness and ability of both parties to negotiate settlements outside of court. Knowing when and how to file for APL, as well as preparing a strong application, can significantly impact its approval and terms. Allow our team at Notaro Epstein Family Law Group, P.C. to assist in navigating these crucial decisions, supporting you with seasoned counsel and strong advocacy.
About Alimony in Pennsylvania
Alimony is a court order that requires the higher-earning spouse to make periodic support payments to the financially dependent spouse after the divorce has been finalized. In Pennsylvania, a court will only award alimony if it finds that it is necessary. Unlike the other two forms of support, there is no mathematical formula to calculate a spouse's eligibility for alimony or the amount of alimony that he or she would be entitled to.
Rather, in determining the necessity, nature, amount, and duration of alimony, the court will consider all relevant factors including:
- The relative earnings and earning capacities of the parties.
- The ages and the physical, mental, and emotional conditions of the parties.
- The sources of income of both parties (e.g., medical, retirement, insurance or other benefits).
- The expectancies and inheritances of the parties.
- The duration of the marriage.
- The contribution by one party to the education, training or increased earning power of the other party.
- The extent to which the earning power, expenses or financial obligations of a party will be affected by reason of serving as the custodian of a minor child.
- The standard of living of the parties established during the marriage.
- The relative education of the parties and the time necessary to acquire sufficient education or training to enable the party seeking alimony to find appropriate employment.
- The relative assets and liabilities of the parties.
- The property brought to the marriage by either party.
- The contribution of a spouse as homemaker.
- The relative needs of the parties.
- The marital misconduct of either of the parties during the marriage.
- The Federal, State and local tax ramifications of the alimony award.
- Whether the party seeking alimony lacks sufficient property to provide for the party's reasonable needs.
- Whether the party seeking alimony is incapable of self-support through appropriate employment.
If the court decides to grant alimony, it can order that the payments last for a specified period or can simply order that they last indefinitely. In either case, the judge will choose a duration that is reasonable under the circumstances. A common misconception is that a spouse will receive one year of alimony payments for every three years the couple was married. While some counties in Pennsylvania may favor this approach, it is NOT the law. There is no bright-line rule for calculating the duration of alimony payments. Rather, if the parties cannot reach an agreement on their own, the court will decide how long alimony should last based on the specific circumstances of the parties. The duration of alimony may also depend on the type of alimony that is awarded.
It's essential to remain informed about the potential length and conditions of alimony obligations, as well as possible termination scenarios, such as remarriage or cohabitation. Legal counsel can help you anticipate and prepare for these situations, providing astute guidance that supports your long-term financial planning. Our firm is dedicated to assisting clients through these processes with clarity and precision, ensuring a balanced approach to financial resolutions.
To speak with an experienced Pennsylvania alimony attorney, contact us online or give us a call at (412) 281-1988 today.
Types of Alimony in Pennsylvania
In Pennsylvania, there are three different types of alimony that can be awarded: rehabilitative alimony, permanent alimony, and reimbursement alimony.
- Rehabilitative alimony is granted to allow the financially dependent spouse to obtain the education or skills necessary to support themselves. In other words, a court can order rehabilitative alimony to allow the financially dependent spouse to get back on their feet. The duration of this type of alimony can vary depending on the specific amount of time the financially dependent spouse needs in order to be "rehabilitated." For example, the court can order rehabilitative alimony until the financially dependent spouse gets their undergraduate degree. The court also has the discretion to order rehabilitative alimony for a specific amount of time (e.g., six years).
- Permanent alimony will require the paying spouse to continue making alimony payments for the rest of the dependent spouse's life. However, don't be fooled by the word "permanent." Alimony by its nature is modifiable (see below). Thus, even though an order for permanent alimony appears on its face to be indefinite, it is still subject to modification and termination.
- Reimbursement alimony: the court orders one spouse to reimburse the other for money spent during the marriage for the benefit of the paying spouse. For example, if one spouse paid for the other spouse's graduate education, a court may grant reimbursement alimony. This type of alimony will usually only last until the other spouse has been reimbursed.
Choosing the right type of alimony is critical. Understanding the distinctions between these categories and how they apply to your circumstances can greatly improve your negotiation leverage. Acknowledging the potential for alimony modification also ensures that both short-term and long-term financial security is considered during deliberations.
Modifications & Terminations of Alimony in PA
Once you have received a court order granting alimony, the paying spouse is expected to comply with the terms of the order for its entire duration. This means that if a court orders one spouse to pay the other $1,200 per month for 15 years, they are expected to make these monthly payments for the entire 15 years. But what if, say, after 5 years, the paying spouse gets injured and can no longer work? Or the spouse receiving alimony remarries? Does the paying spouse have to continue making alimony payments for the remaining duration of the order? Because Pennsylvania law allows for the modification and termination of alimony, the answer may be no.
A spouse can ask the court to modify an existing order for alimony if either of the spouses has experienced a large and ongoing change in their financial circumstances. The court also has the discretion to terminate or suspend the order altogether. So, taking the example from above, if a paying spouse gets injured and can no longer work, they can ask the court to modify or terminate alimony. The same applies if the receiving spouse is the one who experienced a change in financial circumstances.
- For example, if the spouse receiving alimony wins $5,000,000 in the lottery, the paying spouse can ask the court to modify or terminate the order since the receiving spouse no longer needs it. If the court decides to modify alimony, the amount of the payments will be reduced to a number that better reflects what the paying spouse can afford, given their change in financial circumstances.
Thus, although the alimony payments will be reduced, they will not stop altogether. In contrast, if the court decides to terminate alimony, the payments will stop completely.
Alimony payments (excluding reimbursement alimony) can also be terminated for other reasons. For example, alimony is terminated when the spouse receiving the payments gets remarried or begins living with another partner. This means that if an order for alimony states that a spouse will receive payments for 20 years, and that spouse gets remarried (or begins living with a significant other) after 6 months, they will miss out on 19 years and 6 months of alimony payments. Crazy, huh? Alimony payments will also terminate earlier than the order says if either spouse dies. If you have any questions about modifying or terminating your current alimony order, contact us.
2019 Tax Ramifications for Alimony
For many higher-earning spouses, one of the most attractive aspects of alimony is the tax deduction. As the law currently stands, the paying spouse can deduct alimony from their income and the spouse receiving alimony must treat it as income (e.g., pay taxes on it). For example, if the paying spouse makes $100,000 per year and pays $20,000 in alimony, the paying spouse's income is reduced to $80,000 and thus, is not taxed on the amount paid in alimony and may even be put in a lower tax bracket. At the same time, that $20,000 is treated as part of the receiving spouse's income and they are taxed on it. However, this will all change at the end of 2018. For all divorce and separation agreements signed after December 31, 2018, alimony is no longer going to be deductible to the paying spouse and is no longer going to be taxable to the spouse receiving it.
You might be wondering, what does this mean for alimony? Well, the lure of tax deductions can create an incentive for the higher-earning spouse to be more agreeable to alimony. This in turn can reduce the amount of time the parties spend in court fighting about it. However, when alimony is no longer deductible to the paying spouse, they will lose that incentive and may be less inclined to pay alimony. So, what impact will this have on your case? It depends on your circumstances. For some people, it may be best to enter into an agreement before the new tax bill goes into effect, but for others, it may be more beneficial to wait. Regardless, the new law will go into effect soon, so you may want to consider reaching out to an attorney now.
How Can an Alimony Lawyer Help You Navigate Complex Situations?
An alimony lawyer can be a valuable ally during and after a divorce, providing several critical services to help you navigate the complexities of spousal support.
First, they offer expert advice on your rights and obligations concerning alimony, ensuring you understand what you might be entitled to or required to pay. They can help you negotiate fair alimony terms, whether you're seeking support or being asked to provide it, aiming for an arrangement that considers both parties' financial situations and needs.
If negotiation isn't possible, an alimony lawyer can represent you in court, presenting evidence and arguments to support your case and advocating for a fair decision.
Additionally, an alimony lawyer can assist with modifying existing alimony orders if there are significant changes in circumstances, such as a change in income or employment status.
They can also help enforce alimony payments if your ex-spouse fails to comply with court orders. By working with an alimony lawyer, you can ensure that your interests are protected and that the alimony process is handled smoothly and effectively. Have questions? Call our firm today to speak to an attorney.
Understanding that every case is unique, an alimony lawyer evaluates your individual situation, develops a comprehensive strategy that reflects your needs, and adapts to ongoing legal developments. This proactive and personalized approach ensures you are well-supported through each phase of the process, with a clear focus on achieving the most beneficial outcome possible. Ensuring your financial stability and legal rights are preserved is our primary objective.
Frequently Asked Questions About Alimony in Allegheny County
How Do Courts Determine Alimony Amounts in Allegheny County?
In Allegheny County, like in the rest of Pennsylvania, courts determine alimony amounts based on a variety of factors to ensure fairness and adequacy. These factors include the financial needs of the dependent spouse, the paying spouse's ability to pay, and the standard of living established during the marriage. Additionally, the length of the marriage, the age and health of both spouses, and each party's income and earning capacity are considered. Understanding how each of these elements is weighted can be complex, and it is advisable to work with an attorney who can present your financial picture effectively. Our firm provides meticulous evaluations to position your needs clearly to the court, ensuring that you receive or pay an equitable alimony amount.
Can Alimony Agreements Be Changed in PA?
Yes, alimony agreements can be modified in Pennsylvania if there is a significant change in circumstances. This can include a change in either party's financial situation, such as job loss or a substantial increase in income. Other factors like the remarriage or cohabitation of the recipient spouse could also warrant a modification. To pursue a modification, you must file a petition with the court to consider your request. At Notaro Epstein Family Law Group, P.C., we are skilled in presenting compelling arguments for alimony modifications, helping to adjust terms to reflect current circumstances fairly.
What Happens If My Ex-Spouse Does Not Pay Alimony?
If an ex-spouse fails to pay alimony as ordered by the court, there are several legal recourses available. You can file a contempt motion in court, which may result in wage garnishment, suspension of driver's licenses, or even jail time for the non-compliant spouse. It's crucial to keep detailed records of missed payments and any attempts made to resolve the issue amicably. Our attorneys can help guide you through the process of enforcing alimony payments, ensuring your interests are upheld and you receive the support decreed by the court.
How Long Does the Alimony Process Take in Allegheny County?
The timeline for alimony decisions in Allegheny County can vary based on the complexity of the case and the court's schedule. After filing for alimony, it could take several months for all necessary hearings and evaluations to be completed. Factors like the willingness of both parties to negotiate can also influence the duration. During this time, temporary support orders might be issued to provide financial assistance until a final decision is reached. Working with an attorney can help expedite the process, as they can navigate court procedures efficiently and negotiate effectively on your behalf.
What Are the Tax Implications of Alimony Payments?
For divorce agreements finalized before December 31, 2018, alimony payments are tax-deductible for the payer and considered taxable income for the recipient. However, due to changes in tax laws, this provision was removed for agreements finalized after that date. This change means that alimony payments are no longer deductible, and recipients do not have to declare them as taxable income. Understanding these tax implications is crucial in negotiating alimony payments, as they can significantly affect the financial outcomes for both parties. At Notaro Epstein Family Law Group, P.C., we ensure our clients understand these changes and integrate them into strategic planning to optimize their financial arrangements.
For more information on this topic or any topic in divorce, custody, mediation, child support, collaborative law, PFA matters, alimony, or other family law matters, contact Notaro Epstein Family Law Group, P.C. at (412) 281-1988 for a free phone consultation with an attorney. You can also schedule a free consultation online by clicking here.