Many married couples choose to have both spouses working outside the home to able to contribute to their households financially. However, there is a strong possibility that one spouse may contribute more to the household financially than the other. This is also true if one spouse is earning an income, while the other spouse is a stay-at-home parent or homemaker.
Alimony, or spousal support, is often awarded in a divorce when one spouse is earning more than the other spouse. If alimony is awarded, the payee spouse, or the lesser-earning spouse, will receive a certain amount of alimony each month from the payer spouse, or the higher-earning spouse.
How is alimony calculated?
There is no set formula for calculating alimony in New Jersey. However, there is a set of factors that courts consider, along with duration and amount of the alimony awarded. These factors include:
- Length of the marriage.
- Difference in incomes between the spouses.
- Age and health of both parties.
- Standard of living during the marriage and the ability of each spouse to maintain the standard of living individually.
What types of alimony are available?
In New Jersey, there are several types of alimony available in a divorce. These include:
- Open duration: Intended for long-term marriages (marriages that lasted at least 20 years). Awarded until a change of circumstances occurred (payee spouse remarries or gets high paying job).
- Limited duration: Intended for marriages that were not long-term. Awarded temporarily or for a specified amount of time.
- Rehabilitative: Awarded temporarily to a spouse to help them become financially independent (by furthering their education, acquiring new job skills, etc.).
- Reimbursement: Awarded to a spouse who helped the other spouse move forward in their career/education but did not get the chance to benefit from the other spouse’s increased income.
Alimony can have a significant impact on your divorce settlement. If you and your spouse’s incomes are drastically different, alimony will likely play a role in your divorce.