How Minnesota Divorce Lawyers Deal With The Recent Alimony Change

Statistically, it is very difficult for divorced women to rebuild wealth. Therefore, spousal maintenance is an important part of most Minnesota divorces. Beginning on January 1, 2019, alimony will be a lot different.

One change went into effect in August 2016. The new alimony reform law actually affected spousal support modifications, which means that the law is just now coming into play. The Cohabitation Alimony Reform Bill makes it easier to modify alimony based on future cohabitation. There was a concern among many Minnesota Divorce Lawyers that ex-spouses lived with their partners but did not get married so as to not affect their alimony.

The new law does not outlaw this practice, but it does give obligor spouses a fighting chance. Instead of simply looking at the exchange of vows, judges may consider several factors, such as the length of cohabitation and the economic benefit which the ex-spouse receives from this arrangement.

The other big change was part of the December 2017 tax reform package. Currently, alimony payments are tax-deductible and alimony receipts are taxable income. Effective January 1, 2019, both these things go away. The obligor can no longer deduct alimony payments, and the obligee does not have to report the payments to the IRS or MDR.

For tax purposes, spousal support payment will be like child support payments. Neither payments nor receipts have any tax consequences. If alimony reformers had their way, the entire system would change along these lines. Many people decry the subjective nature of alimony in places like Minnesota. In the summer of 2017, there were rumblings that the Legislature would soon consider a comprehensive alimony reform bill. But so far, nothing has materialized.

What Types of Alimony Can Minnesota Divorce Lawyers Set Up?

As it stands, Minnesota law contains three different kinds of alimony. A Minnesota judge may order any, all, or none of these types.

  • Temporary Maintenance: While the case is pending, many spouses have immediate and unexpected financial needs. These needs include things like attorneys’ fees, property deposits, and household maintenance expenses such as rent and utilities. Temporary maintenance gives spouses the money they need to meet these expenses. Income is basically the only factor. Courts rarely look at the broader picture.
  • Short-Term Maintenance: These payments are appropriate if a spouse needs some additional help after the divorce to become self-sufficient. That could be money to finish a college degree or an additional income stream because the spouse must accept a lower-paying entry level job. Other ex-spouses need money while they wait for a house to sell.
  • Long-Term Maintenance: Reformers hate this third type of alimony. It is subjective and also clearly designed to redistribute income. Although the rule is not set in stone, most Wright County judges do not award long-term alimony unless the spouse can never become self-sufficient, perhaps due to a disability, or the marriage lasted longer than ten years.

Minnesota Divorce Lawyers may usually modify the alimony terms based on changed circumstances. As discussed above, the 2016 alimony reform bill made these motions easier to prove in some situations.

Factors in Determining Amount of Payments

The above categories roughly coincide with the duration of alimony payments. For example, temporary maintenance automatically ends when the judge signs the decree. As for the amount of payments, the judge basically weighs the obligee spouse’s economic need against the obligor spouse’s ability to pay. Some specific factors include:

  • Each Spouse’s Economic Means: In addition to employment and other income streams, the judge may normally take the property settlement into consideration. That includes any award of separate property.
  • Educational Need: Obligor spouses do not need to help pay for self-improvement classes. But they do have a legal obligation to help pay for courses related to economic self-sufficiency. That status is in everyone’s best interest.
  • Standard of Living During the Marriage: This factor looms large in long-term maintenance awards. According to the law, the divorce should not be an unfair financial burden for either spouse. Some financial pain is inevitable. But, it should be evenly spread between the parties to the greatest extent possible.

Fault in the breakup of the marriage is not relevant with regard to alimony. But Minnesota Divorce Lawyers may be able to introduce such evidence in the property division phase, through a back door called the dissipation (waste) rule. If Wife spent $10,000 on a gift for a boyfriend, Husband may be entitled to reimbursement for the community share.

CALL TODAY TO SPEAK WITH A MINNESOTA DIVORCE LAWYER AT CARLSON & JONES

Parts of the alimony law are changing, but other parts are still the same. For a free consultation with experienced Minnesota Divorce Lawyers, contact Carlson & Jones, P.A. Convenient payment plans are available.

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