New Alimony Law

Effective January 1, 2019 there is a new law that dramatically changes the way in which the Court calculates Alimony.  This new law replaces earlier versions of the Alimony Statute. The new law allows the Court to award “term alimony” or “reimbursement alimony.” When considering whether term alimony is appropriate the court will consider the disparity of income between the parties such that one party is unable to meet his or her own reasonable needs taking into account the martial lifestyle of the parties.  If the Court finds that an award of term alimony is appropriate the formula applied by the court is the lesser of payee’s reasonable need, or 30% of the difference between the parties gross income at the time of the order. The maximum duration of term alimony is 50% of the length of the marriage. Term alimony may be modified (up or down) if there is a substantial unforeseen change of circumstances and the modification will not cause undue hardship on either party.

Reimbursement alimony is not need based. Rather, it is to compensate the payee for economic or non-economic contribution to the financial resources of the payor when there are insufficient assets available to the parties to make an adjustment through distribution of the couple’s assets. The maximum duration of reimbursement alimony is 5 years from the effective date of the decree. Reimbursement alimony is not modifiable.

Alimony is an important element in any divorce one that needs careful consideration by both parties. It is important that anyone considering divorce seeks legal counsel to avoid the pitfalls that await them with the new alimony law.