Maybe you were a hardworking child who went to school and returned to take over a successful family business or an entrepreneur who built an enterprise from the ground up. Or maybe you were the supportive partner who took time off from building your career to support your spouse in their endeavors. Whatever the situation, those who are going through a divorce after a partner worked hard to build wealth will have questions about how courts determine alimony. The following will provide some guidance, outlining three of the more important things to know for those who find themselves in this situation.
#1: How is alimony determined?
The answer to this question will depend on the state. In Ohio, alimony, or spousal support, is determined based on several factors. The court considers the length of the marriage, the income and earning potential of both parties, and the standard of living established during the marriage. The goal is to help better ensure that both parties can maintain a similar lifestyle post-divorce.
#2: What factors will the courts take into consideration when determining spousal support payments?
Courts in Ohio evaluate multiple aspects to decide on alimony, often including:
- Income and earning capacity: The court examines each spouse’s current income and potential to earn in the future. High-income earners may face larger alimony payments due to their substantial earning capacity.
- Duration of marriage: Longer marriages often result in more significant alimony awards, as the dependent spouse may have sacrificed career opportunities for the marriage.
- Standard of living: The court will carefully review the lifestyle enjoyed during the marriage and aim to allow both parties to maintain a similar standard post-divorce.
Additional factors can include the contribution of each party to the education or training of the other, tax consequences of alimony award, and loss of income earning potential due to one party’s marital responsibilities.
When making its determination, courts in Ohio do not take a strict, formulaic approach. They are awarded some flexibility to put together an award as it deems fair for the situation.
#3: How long do alimony payments last?
There is no fixed duration for spousal support; instead, it is tailored to the specific circumstances of each case. Generally, for marriages of shorter duration, spousal support may be temporary and aimed at helping the recipient become self-sufficient. For longer marriages, the court may award support for a more extended period. The court may also consider factors such as the age, health, and financial needs of both parties. It is also important to note that Ohio law allows either party to seek to modify or terminate spousal support if there is a significant change in circumstances, such as remarriage or a substantial change in income.
High income earners often have assets the require expert valuations and careful consideration during the property division portion of the divorce proceeding. This can also play into negotiations for spousal support payments. Those who are navigating this process are wise to seek legal counsel with experience to better ensure their rights and interests are protected and mitigate the risk of any surprises after you finalize the divorce.