How is Spousal Support Determined?

Spousal support is determined based on the gross income of the parties or anticipated income, if a party is not employed in a full-time capacity. Income is considered earnings from any source and can include bonuses, commissions, in-kind payments, passive income (such as rents), and variable compensation.

There is a guideline amount of support that serves as a starting point to determine the amount of support.  While it provides a starting point, there can be adjustments for factors like property distribution, financial resources, and reasonable financial needs as established during the marriage. Marital misconduct is not a factor for a court to consider in a spousal support calculation.  It is crucial to work with an experienced professionals who can navigate these intricacies and ensure that the final support determination is reasonable and fair.

The guideline support amount is determined using total combined gross income for household incomes up to $220,000.00.  When total income exceeds this threshold, the guideline amount may be adjusted through extrapolation.  Adjusting through extrapolation may result in an imbalance of support as one party may receive more share of the gross income than intended or needed for support.

The tax implications, especially for the payor spouse, are significant considerations in structuring spousal support.  When the payor spouse’s income surpasses a certain threshold (for example $191,500 for 2024), it may be necessary to adjust the amount of support to account for a larger tax liability.

Can Spousal Support be Modified?

If a prior spousal support award may or may not be modifiable in the future depends on the original spousal support order. If the original order was contractual and non-modifiable, it is most likely NOT modifiable. If the award was not contractual and non-modifiable it may be modifiable in the future. A court may only modify a prior award if it has become so unconscionable that enforcing its terms has become unreasonable.  This is a high threshold to meet anda mere increase in one spouse's earnings is generally insufficient to meet this burden. An award may become unreasonable if the payor was subainted a significant decrease in earnings or earnings capacity.

We recommend to our clients to consider the impact of potential changes in future incomes on a spousal support award during settlement negotiations. It's always more practical to adjust the original document than to seek modifications after the fact. If the payor spouse is retiring it could also justify a modification of prior support award.