Alimony Meaning
“Alimony” means payments for the support and maintenance of a spouse, either by lump sum or on a continuing basis. It is paid by the “supporting spouse” to the “dependent spouse”.
The general rule is that a spouse is dependent when he or she makes less money than the other spouse. Technically, a dependent spouse is a spouse, whether husband or wife, who is actually substantially dependent upon the other spouse for his or her maintenance and support or is substantially in need of maintenance and support from the other spouse.
Here’s a direct quote from the current statute on alimony :
To be “actually substantially dependent,” and thus entitled to alimony, a spouse must have an actual dependence on the other in order to maintain the standard of living to which he or she became accustomed during the last several years prior to the spouses’ separation. To be “substantially in need of support” means that the dependent spouse would be unable to maintain his or her accustomed standard of living established prior to separation without financial contribution from the other.
In layman’s terms, a dependent spouse is anyone whose quality of life would significantly decrease if left to fend for themselves compared to how their life was in the marriage. This also frequently takes into account how the other spouse would fair. For example, a spouse who makes $115,000 a year will probably not be entitled to alimony from an ex-spouse who makes $120,000 a year, but that same spouse would very likely be entitled to it if they were only making $30,000 a year.
Payments and How Much
The amount of alimony varies widely. Spousal support is to be paid in such amount as the circumstances render necessary, having due regard to the factors considered by the courts. For instance, when the dependent spouse has committed acts of illicit sexual behavior, the supporting spouse is not required to pay any alimony at all. If however, the supporting spouse has also committed acts of illicit sexual behavior, then the court is permitted to award alimony. If only the supporting spouse has committed such acts, then the court must award alimony to the dependent spouse.
You and your spouse may decide that one of you is entitled to receive spousal support and may do so without going to court. If you are unable to agree on the matter, then you can submit the issue to the court for a decision. Alimony is paid by a supporting spouse to a dependent spouse when the court deems it necessary after considering the sixteen statutory factors.
Is Alimony Taxable?
It is important to remember that regardless of whether alimony is arranged by agreement or ordered by a court, it is taxable to the recipient spouse and tax deductible to the payor spouse. An award of alimony may include, in addition to a sum of money in lump sum and/or periodic payments, transfer of title or possession of personal property and an interest in property, a security interest in or possession of real property.
Both periodic and lump sum payments may be for a limited, specified term. In fixing the amount of alimony, the court must consider all the factors enumerated in G.S. 50-16.3A (b): “The court shall exercise its discretion in determining the amount, duration, and manner of payment of alimony. The duration of the award may be for a specified or for an indefinite term.”
What else should I know?
That about covers the basics of alimony, but there is a lot more information concerning it that may be important to you. If you want to know more about what alimony is, visit our Alimony Center. You’ll find more in depth information including whether or not you’ll owe alimony to your spouse, an alimony calculator, and under what circumstances you can have your attorney fees for alimony covered.
