SPOUSAL MAINTENANCE
Spousal Maintenance. Spousal Maintenance is what is called alimony in the Internal
Revenue Code. It is income to the party who receives spousal maintenance and it is a deduction to the party who pays it which
means that it costs the party who pays it less to pay than it appears because of its deductibility and for the one who receives
it, payments buy less than it appears because taxes invariably will have to be paid on its receipt. This is a very
contentious area in Minnesota divorce law. As a general principle, the shorter the marriage, the less likelihood
of spousal maintenance being awarded to either party. There are exceptions to this rule but marriages less than ten years
of duration are usually not marriages in which spousal maintenance will be paid. The likelihood of spousal maintenance being
awarded increases significantly for marriages of greater than 20 years duration, if there is disparity in income between the
respective parties. In general, the amount of spousal maintenance depends upon the relative incomes and expenses of the parties
and a lot of time and effort can be spent in attempting to resolve this issue or possibly going to a Court Trial on this issue.
My office uses software called Fin Plan which assists us in analyzing the financial consequences of payment and receipt of
spousal maintenance given the specific circumstances of the case. I have found this software to be invaluable in advising
clients on the issue.
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