Determining spousal support is a critical step in the divorce process. It involves more than deciding whether support is appropriate.
Once the decision that spousal support is appropriate is made, the next questions are: how much should be paid, and for how long?
Courts use a variety of methods to calculate spousal support payments, from income equalization formulas to budget-based approaches, each tailored to balance financial fairness.
In this article, we’ll discuss the most common calculation methods, how payment durations are determined, and the unique flexibility divorce mediation offers in creating personalized solutions.
How Much are Spousal Support Payments?
50-50 or Equalize Gross Incomes
Some courts “equalize incomes” in awarding support by adding together the parties’ gross incomes, dividing by 2, and then ordering payments from one spouse to the other.
For example, if one spouse earns $80,000 per year and the other earns $30,000 per year, the total income is $110,000, and each party is entitled to an equal half of the total: $55,000.
The spouse who earns $80,000 is ordered to pay $25,000 per year in spousal support to the lower-income earner so that they each have a gross income of $55,000, or 50% of the total income.
Percentage of Gross Income
Other courts use a percentage balance different than 50% or 50-50.
In the same scenario as above, if the court determines that the lower income earner is entitled to 40% and the higher income earner is entitled to 60% of the couple’s total income, the lower income earner would receive 40% of $110,000, which is $44,000, and the higher income earner would receive 60% of $110,000, which is $66,000.
The higher income earner would thus pay $14,000 per year in spousal support to the lower income earner.
Percentage of Net Incomes
Yet other courts employ the same percentage concepts as above (e.g., 50-50 or 60-40), but they consider net incomes or incomes after taxes.
The above examples use gross incomes without considering the effect taxes have on how much one spouse “takes home” after paying taxes. The taxability of spousal support payments themselves also affects this consideration.
Budget Based
Another approach used by other courts is budget-based.
This approach focuses on each spouse’s cash flow needs and accounts for the practical realities of transitioning from one joint to two separate households.
How Long Are Spousal Support Payments Made?
Spousal support can last for the recipient’s lifetime, a term of years, or just a few months. It may also be paid as a lump sum.
In many Ohio counties, there is a correlation between the amount and duration of support.
In Cuyahoga County, for example, the judges frequently follow a rule of thumb that one year of support should be paid for every three years of marriage.
Other counties award larger support payments, but they last one year for every four or five years of marriage.
Divorce Mediation Affords You More Flexibility
In the Divorce Mediation process, spouses have more flexibility to design spousal support payments to fit their needs.
For example, suppose a spouse is concerned about having support until retirement age.
In that case, the spouses can agree that support will be paid at a lower amount than might otherwise be appropriate but paid over a more extended period.
If spouses want a shorter support time, the payments might be more significant than otherwise, but paid over a shorter period.
How Are Spousal Support Payments Calculated in Mediation?
Our software will perform all the above calculations and many more.
One advantage of our Divorce Mediation services is that we can project the effects of any proposed settlement offer to help you understand how a range of support possibilities would impact your day-to-day lifestyle and plan for your financially independent future.
Schedule a free consultation with a Mediator today to learn more about the benefits of using our spousal support calculation methods.
