Maintenance (Updated)
Maintenance is sometimes known as spousal support or alimony. It is a hot topic with clients and the court. It is important to understand how the courts determine whether someone should receive maintenance and if so, how much and for how long.
Step One: Who gets it?
The court decides whether an award of maintenance is appropriate by looking at several factors contained in 750 ILCS 5/504. A few of the most commonly applied factors include income, earning capacity, financial needs, health, age, education, work experience and the length of the marriage.
Step Two: How much?
If the couple’s combined gross income is less than $500,000.00 per year, the court applies this formula: 33 1/3% of the payor’s net annual income minus 25% of the payee’s net annual income. The difference is what the higher earner pays to the lower earner. However, the maintenance will be reduced if when added to the receiver’s income, the receiver’s income exceeds 40% of the couple’s combined gross income. The court can choose not to apply the formula in certain situations when the outcome is unfair. If the couple’s combined gross income is more than $500,000.00, the court has broad discretion to determine the maintenance amount. This formula was changed after the changes to the federal tax laws too effect in 2019. We must now use net income as opposed to gross since maintenance awards after 2019 are no longer taxable or tax deductible for federal tax purposes.
Step Three: How long does it last?
It can be a lump sum, but more frequently it is paid periodically, such as monthly or biweekly. The court bases the duration on the length of the marriage. The court can also name termination events, such as remarriage and death. A recent change in the law makes the date of filing for divorce important in calculating the duration of maintenance. As you can see, it is complicated. It is important that your attorney understands the laws and nuances. We regularly successfully represent clients seeking maintenance and those worried about paying maintenance.
Contact us to discuss your case.
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