Articles Posted in maintenance

As discussed in previous posts, the judge presiding over a New York divorce has the ability to order one party to pay the other spousal maintenance. There are two types of spousal maintenance.

CalculatorThe first is called pendente lite. Pendente Lite is a Latin term meaning “during litigation.” This is a temporary maintenance award that is designed to last only through the divorce proceeding. The justification for this order of support is that the spouse who controls the finances could otherwise cut off the other spouse’s access to money during the divorce proceeding before any judicial finding has been made. The second type of spousal maintenance is post-divorce maintenance, which continues for either a set term of years or, in rate circumstances, until death.

Both types of spousal maintenance are calculated by the formula contained in DRL section 236 and take into account similar factors. However, under certain circumstances, a judge can deviate from the maintenance amount provided by the formula by awarding more or less support, depending on the circumstances.

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Following a New York divorce, the judge presiding over the case may require one of the parties to provide regular spousal maintenance payments to the other party. These payments – known as maintenance in New York but commonly called alimony – are calculated according to a specific formula laid out in New York Domestic Relations Law section 236(B)(6). Spousal maintenance may be ordered for a specific period of time, or, in rare circumstances, it may be ordered for the lifetime of the receiving spouse.  There are presumptive guidelines for the amount and duration of maintenance based on incomes and length of the marriage.

YachtWhile spousal maintenance payments are primarily determined by the formula contained in section 236(B), there is a fair amount of judicial discretion in divorces with high-income earning spouses. As a general matter, New York law imposes an income cap when determining the appropriate amount of spousal maintenance. Back when the New York Domestic Relations Law was rewritten, the income cap was set at $175,000. However, the income cap increases incrementally year-over-year according to the consumer price index. The current New York spousal maintenance income cap is $184,000.

If a party to a New York divorce earns above the current income cap, the judge will apply the formula in section 236(B)(6) to determine the amount of spousal maintenance up to the income cap. However, a judge may exercise her discretion in ordering additional spousal maintenance by taking into account the party’s income in excess of the cap.

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Divorce or family law issues for unmarried people is a complicated time for any couple, but situations can become far more complex when children are added into the mix. Sophisticated-couple-fight-300x200Not only do New York divorce attorneys and the New York Supreme or Family Courts need to determine who should provide care for those children in terms of custody, but they must also decide whether and what child support should be given from a non-custodial parent. If child support is awarded, then the New York Courts may use a range of factors to determine exactly how much should be given. The decision comes from a careful consideration of both the payor’s income, the custodial parent’s income, the child support guideline’s and reasons to deviate from the guidelines.

Before a payor’s income can be used to calculate child support payments, certain deductions may be applied to the total earning potential of the individual. The New York Child Support Standards Act provides a formula based on percentage of income, to determine exactly how much support should be paid. Deviations from the guideline amount of support can be argued or negotiated by family law attorneys or divorce lawyers. The Child Support Standards Act indicates that there are numerous things that can be deducted from a person’s income before the formula is applied, including:

  • Maintenance/ alimony to be paid to the current spouse
  • Maintenance/ alimony paid to a previous spouse
  • Child support paid pursuant to a written agreement or court order for a child for whom the parent already has a duty of care.
  • Supplemental security income
  • Public assistance payments
  • New York City earnings or income taxes paid
  • Federal insurance contributions act taxes paid
  • Unreimbursed employee business expenses

This blog will briefly discuss, what are unreimbursed business employee expenses? Continue reading

At some point in a New York divorce case, the court will generally make a child support determination, a spousal support determination, or both. Support determinations can have an enormous effect on both of the parties to the divorce, and the court is supposed to rely on specific information when making them. However, in some cases, a court may rely on information that was not correct, or it may have made a determination without considering all of the relevant information.

FrustrationIn such cases, New York family law allows for the adversely affected party (the debtor) to bring this to the court’s attention. Under New York Consolidated Laws, Article 52, section 5241(e), the party can claim that the court’s determination was based on a “mistake of fact.”

A mistake of fact is defined as “an error in the amount of current support or arrears or in the identity of the debtor or that the order of support does not exist or has been vacated.” Most commonly, the mistake is related to the amount of support ordered by the court.

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Divorces may surge in 2018 due to the new tax law that was just passed.  The end of a marriage can bring several concerns to the front of mind Mature-Couple-Budget-300x200for people in New York, and across the United States. After all, divorce isn’t just an emotional issue for everyone involved, it’s also a financial quagmire. Beyond the expenses of a divorce attorney or child custody lawyer, those seeking a divorce will also need to think about how they’re going to dissolve the family household and transition to two. This means making decisions about everything from parenting time and visitation, to maintenance payments (otherwise known as alimony).

The guidelines that are set in place to help divorce lawyers and courts come to terms with the amount of maintenance that should be paid to a spouse in certain circumstances are designed to make the process as simple and streamlined as possible for everyone involved. However, thanks to the recent changes in tax law that was just signed into law in December 2017, the considerations involved with planning a divorce are about to change. Continue reading

When a couple goes through the process of divorce, they encounter several concerns that need to be discussed. Mediation-Couple-300x200For partners with children, many of the biggest issues center around ensuring that the youngsters within the family continue to get the support and guidance they need. However, there are many other important elements to think about for both parents, and non-parents. One of the most common issues I address as a divorce attorney and in my work as a mediator is “spousal maintenance”, or alimony as it is sometimes called.

Many people elect to use divorce mediators when it comes to making decisions about maintenance, because alternative dispute resolution methods can allow them to retain some control over the decisions that are made about their future. Of course, while mediation is often considered to be a less combative form of dispute management, the discussions held around maintenance can be complex, as it means determining why a certain spouse believes they are entitled to support, and whether the amount given in that support should follow the guidelines set by the state of New York. Often, each party will have a different definition of what is “fair” according to their circumstances. However, I found that the non-judgmental and open discussion in mediation can provide a perfect platform on which to find a resolution that suits both sides in a divorce. Continue reading

When a marriage is ending, unless there is a valid agreement between the parties, it is left up to the judge to determine the financial responsibilities of the parties in what they call in New York equitable distribution. In most cases, this requires the judge to figure out all of the marital assets as well as the marital debts. Student-loan debt is no exception; however, calculating which party is responsible for the payment of student-loan debt may be more complicated that it initially seems.

Graduation CapStudent-Loan Debt Incurred Before the Marriage

As a general rule, student-loan debt that is incurred prior to the marriage is not considered a marital debt, and the party who took the loan out will be solely responsible for the payment of that debt. However, student-loan debt that is incurred during the marriage presents a more difficult situation and often requires the court to apply a multi-faceted test to determine which percentage of the debt, if any, is attributable to the spouse who did not incur the debt.

Student-Loan Debt Incurred During the Marriage

Under New York case law that was decided prior to the 2015-2016 updates to the New York Domestic Relations law student-loan debt may be considered marital debt that is subject to equitable distribution, depending on all of the surrounding circumstances. However, prior to the 2015-2016 update to the New York Domestic Relations law this used to also means that the degree or professional license that was obtained through the procurement of the debt may also be subject to equitable distribution.  The updated Domestic Relations law, however, specifically changed the law to say that degrees were not subject to equitable distribution.  In one of my next blogs we will examine whether the change to the New York Domestic Relations Law about degrees being subject to equitable distribution has altered the landscape about student loan debt.

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When a marriage is in the process of coming to an end, it is common for one spouse to make payments to the other spouse not just throughout the pendency of the divorce proceeding but also moving forward on a permanent or semi-permanent basis. The term for these payments is spousal maintenance. Payments made during the divorce proceeding are called temporary support payments, whereas payments made after the divorce is final are called post-divorce payments. Spousal maintenance, which is intended for the benefit of the payee spouse, is different from child support benefits, which are intended for the benefit of the children of the marriage.

CourtroomHow New York Courts Determine Spousal Maintenance Payments

Recently, New York lawmakers passed a new law that tweaked the way spousal maintenance payments were calculated. Under the new law, if an agreement is not made between the parties and their divorce lawyers, the judge presiding over the divorce proceeding will use a predetermined formula to calculate both temporary maintenance support payments as well as post-divorce payments.  Incidentally, this same formula applies to spousal support proceedings in Family Court.  While the formula is somewhat complicated and beyond the scope of this post, it takes into account the following:

  • Whether the payor spouse is also paying child support payments;
  • The total income of the payor spouse (under the new law, only the first $175,000 of the payor spouse’s income will be used in the calculation);
  • Whether the parties entered into a valid written agreement regarding the determination of spousal maintenance payments; and
  • How long the marriage lasted.

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A divorce is a complicated process that requires the partners involved to answer a lot of crucial questions about their Young-Couplefuture – from who is going to have custody of the children, to who will pay or receive payments to or from the other if at all. Dividing property in a divorce is generally one of the most contentious issues that need to be resolved before a pair can continue their lives and go their separate ways. Moving through a divorce when, as a couple, you know that you have an outstanding mortgage, can be a huge worry. However, understanding what might happen to your home can help to make the process somewhat less stressful.

Today, we will attempt to examine the question of whether a New York divorce court can order a mortgage to be paid during a pending divorce. However, like most things in divorce law, it’s worth acknowledging that the answer may not be a simple one. Often, when it comes to equitable distribution, maintenance payments, child support and custody / visitation or parenting time maters a range of other concerns in the legal system, there are short and long answers to consider. The short answer is that if a New York court has ordered child support and maintenance to be paid – according to the new law that has taken effect in 2016 – the recipient of that award is intended to use the funds they have received to pay the mortgage and their other expenses where they are living – while the case is pending or Pendente Lite. Continue reading

 

Until “no fault” divorce became possible in the state of New York in 2010, couples wishing to file for divorce typically went through a process that included a period of separation prior to the actual Sophisticated-couple-fightfiling of a summons for divorce. Although legal separation is no longer technically required in New York, some couples still choose to follow this procedure or sign a separation agreement, in order to make sure all the issues are settled, and then immediately file for divorce on the no fault grounds without waiting.

Spouses who enter into a period of formal separation must do so through a written separation agreement, which addresses financial issues such as temporary child support and pendente lite spousal maintenance (aka “alimony”) while the parties are living separately.

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