Illinois Law Simplifies Process for Calculating Alimony Payments

 Posted on September 04,2014 in Alimony / Maintenance

Divorce is never easy. There are so many issues for couples to fight about, including money, property, and custody of children. Even when spouses have a premarital agreement, they could still end up fighting over these and other issues. However, thanks to a new state law, now divorcing couples will face fewer battlefronts.

Previously, when courts determined maintenance (alimony), they relied on a myriad factors to decide on a fair amount. The problem with this system was that there were no overarching monetary guidelines. In other words, spouses could not accurately predict how much they would either pay or receive in maintenance. Nor could they predict how long the maintenance payments would endure.

Step One: Calculate the Maintenance Payment

 Under the new law, these issues have been resolved. Maintenance will now be determined by a specific calculation, similar to that used to determine appropriate child support payments. Setting maintenance is a two-step process. First, the court will look to both spouse’s gross incomes, subtracting 20 percent of the receiving spouse’s gross income from 30 percent of the paying spouse’s income.

For example, suppose that the paying spouse has an income of $120,000 and the receiving spouse has an income of $40,000. Thirty percent of $120,000 is $36,000, and 20 percent of $40,000 is $8,000. That means the receiving spouse would get $28,000 in maintenance per year. There is a caveat, though. The receiving spouse’s income plus maintenance cannot exceed 40 percent of the couple’s combined gross income. Moreover, the court can deviate from this formula if special circumstances warrant so (this is similar to how courts can deviate from the child support formula).

Step Two: Calculate the Duration of Maintenance Payments

The second step is to look at the duration of the marriage. The amount of time a spouse will pay or receive maintenance is based on the number of years married multiplied by a set factor:

• 0 to 5 years of marriage multiplied by (0.20)
• 5 to 10 years of marriage multiplied by (0.40)
• 10 to 15 years of marriage multiplied by (0.60)
• 15 to 20 years of marriage multiplied by (0.80)

For example, if the couple had been married for 11 years, the paying spouse would be on the hook for four years and four months. Note that if the marriage exceeded 20 years, the court has discretion to order permanent maintenance or to order maintenance for a number of years equal to the years married.

In addition to these new formulas, there are other factors at play. These are the factors that courts considered prior to the new law, and they include:

• Each spouse’s present and future income capacity;
• What the spouse contributed as a homemaker or if the spouse put his/her own education/career on hold for the other’s benefit;
• The standard of living established during the marriage; and
• The tax consequences of property division.

While the new law simplifies the process for setting alimony payments, it does not mean you do not need an experienced Kane County divorce attorney. Contact us today for a consultation. We will help you understand your rights and what you can realistically expect during the divorce process. We can assist those in the St. Charles area.