Diminishing returns: How long does spousal maintenance last?

If you’re new to the prospect of divorce—and I hope you are, inasmuch as this hopefully isn’t your second or third go-around—you may be surprised to learn that spousal maintenance, a.k.a. “alimony payments,” do not last forever.

Wait, what? They don’t? How long do they last? And what if you’re accustomed to an affluent lifestyle? What then?

In this article, I’ll give you some quick guidelines and information. For more in-depth information, as it pertains to your situation, contact me. I’m a CPA, a CERTIFIED FINANCIAL PLANNER^® professional, and a Certified Divorce Financial Analyst^® professional. This is what I do.

The state of Arizona maintains statutory requirements around spousal maintenance, based on ten different factors, such as the length of the marriage, whether either party was disabled/couldn’t work, and so on. In addition, the two big hurdles that must be cleared are 1) if you qualify for spousal maintenance, and 2) your husband’s ability to pay.

For affluent women seeking a divorce financial expert, 2) is often a lower hurdle than the amount in 1) is! That’s because courts and mediators alike have a hard time wrapping their financial heads around the “reasonable need” of women who have been accustomed to living with income that’s more than theirs! (I wrote another article about this; you might want to check it out.)

But briefly, to answer your question about how long spousal maintenance payments last, it’s something like this:

• Zero to ten years of marriage: No spousal maintenance.

• Ten to 20 years of marriage: The spousal maintenance (typically paid monthly) will last between zero and up to one-third of the length of the marriage itself. So an 18-year marriage could, say, top out at six years of payments.

• More than 20 years of marriage: The spousal maintenance will last between one-third and one-half the length of the marriage. So a 20-year marriage could top out at, say, ten years of payments.

I said “something like this” above, because it’s not black-and-white. Every case is different.

Here’s an example to help you understand some of the nuances:

Despite their wealth, many affluent men who are divorcing absolutely detest the idea of writing a check to their ex-spouse each month. That psychological barrier can actually pose an opportunity for you, in terms of what’s called a “lump sum spousal maintenance payout.” These divorce financial strategies effectively trade off the monthly payments for a lot of cash up front. The husband is happier, because 1) he doesn’t have to write a check each month, and 2) he can save a little money, because if he’s offering cash-up-front, he will typically get a discount (i.e., pay less) vs. what he would have paid, for the total of all the monthly checks over time.

The wife is often happier, too, because, well, she gets a big lump of cash!

As I’d said, every case is different. But the more assets involved, the more that you and your attorney will want the services I offer. Now that you know how nuanced it can be, you can appreciate how great it will be to get different options from me, which you can choose from, and then green-light your attorney to negotiate on your behalf.

Contact me and let’s get that equitable settlement underway.

New service: Settlement Assurance Review

I now offer a new service—I call it my Settlement Assurance Review—in which, for a nominal fee, I’ll review a proposed settlement for any hidden financial issues or tax implications, before it goes to court or mediation. It’s a great option for giving you (and your attorney) extra peace of mind.

Want to learn more? Contact me today and let’s talk.