When a divorce is filed in New York, sometimes one party has to pay the other party temporary maintenance (formerly called alimony) while the case is pending and/or post-divorce maintenance payments for a period of time. Usually maintenance is sought because there is a substantial disparity in incomes, or when one party stayed home to care for children and lost out on career opportunities, or when one party is disabled and unable to work. The amount and length of time that maintenance payments are made is calculated based on a formula. The amount of maintenance can be calculated using the NYS Maintenance Calculator.
Maintenance awards are common when there is a significant disparity between the income of the parties. It is less common when each party is capable of self-support, or neither party makes enough money to reasonably make the payments. The award is geared toward encouraging the economic independence of the party with the lower income.
The length of time that maintenance is payable can be between 15% and 50% of the length of the marriage. The length of time for maintenance payable can be calculated using the NYS Maintenance Calculator.
In the years prior to 2018, spousal maintenance was taxable income to the spouse receiving it, and tax deductible to the spouse that paid it. Starting in 2019, Maintenance Awards became tax neutral, meaning there are no tax consequences for either side, much like the tax treatment of child support. (see Tax Cuts and Jobs Act of 2017)
Call Stephen K. Underwood, Esq.
(716)656-7676
or get started with a complimentary case evaluation.