- October 17, 2024
- Divorce
Calculating Alimony in Colorado Can Be Complicated
Deciding to file for a divorce can be a difficult decision — nobody gets married planning their union’s demise. But, for a variety of reasons, divorce can be the right answer to irreparable issues in a marriage.
Divorce is a multifaceted process during which you and your soon to be ex will have to identify issues and develop plans as you move forward separately. These include things like child custody, separation of assets and alimony (also known as spousal support).
Either spouse may be required to pay alimony to the other, depending upon the particulars of their situation.
Ensuring that all factors influencing the award are taken into account and that the alimony decision and amount is appropriate and accurate is a complex process, one you should work with an experienced Colorado divorce attorney to determine.
Understanding Colorado Alimony
What Is Alimony?
Alimony is the amount of money one spouse is ordered to pay to the other in a divorce. It is important to recognize that not every divorce results in alimony payments. In Colorado, the courts take a host of issues into account when determining whether alimony is a reasonable part of a separation. Some of the things they consider include:
- How long the marriage lasted: Longer unions are more likely to result in alimony payments.
- Differences in financial situations: When one person earns considerably more, has the potential to earn considerably more, or has a wealth of other financial resources, alimony may be ordered.
- Biological factors: Both health and age and their effects on earning potential can impact alimony payments.
- Marriage contributions: Courts look at the big picture and what each person brought to the marriage. While assets and financial support are important, so are raising children and taking care of the home.
In addition, the courts will also review each spouse’s ability to support themselves. Sometimes, one spouse may have been out of the job market for years as they raised children or supported their partner’s career. They may not be able to immediately step into a job where they can become financially secure without additional training or education.
Types of Alimony
Something many people don’t realize when discussing alimony is that the term does not refer to a “one size fits all” type of support. The state of Colorado recognizes that not everyone is in the same situation; thus, different types of alimony exist.
Couples embarking on divorce proceedings enter into a new phase of their relationship. They may no longer be living together, yet the division of property and finalization of the ending of a marriage takes time. Quite often, when life situations change, so does the ability for one of the spouses to provide for themselves Temporary alimony, also referred to as separation alimony, offers financial support and stability during this time. These payments are scheduled to end once the divorce is finalized. At that time, if additional support is necessary and awarded, it will begin.
Sometimes, spousal support is assigned for very specific reasons. Rehabilitative support may be ordered when one spouse needs time to obtain additional education and skills in order to care for themselves financially.
Reimbursement alimony comes into play when one spouse has supported the other (either financially or by managing the house and children) while the other focuses on their career. The courts recognize that there is value to this and can assign compensation based on it.
Finally, situations do occasionally arise where one spouse simply cannot provide for herself or himself and won’t ever be able to do so. This can be a result of age, certain disabilities, or even long-term illness. In cases like this, the other spouse may be required to pay what is known as permanent alimony, providing long-term support.
Alimony discussions can be contentious. When addressing this issue as you file for divorce, it is important to work with a Colorado divorce attorney who is well-versed in divorce law and experienced in working with couples whose financial situations mirror your own.
How Is Alimony Determined in Colorado?
Colorado Law Governs the Process
If you and your spouse are filing for divorce after at least three years of marriage, and your adjusted gross income falls below $240,000, calculating alimony is part art and part science. The state of Colorado has developed a formula which the courts use in cases like this.
First, they take 40% of the monthly gross income of the higher earning spouse. Then, they calculate 50% of the lower earning spouse’s gross monthly income. The difference between the 50% number and the 40% number provides a starting point from which to work.
Because the state recognizes that each situation is unique, the courts are empowered to adjust the calculation, taking into account the list of factors provided earlier in this blog.
It is important to recognize that while the above guidelines govern marriages of a certain length and financial position, those in other situations may still be able to receive alimony payments. Individuals whose marriages were for a shorter term should consult with their Colorado divorce attorney for guidance on pursuing spousal support. Additionally, high net worth individuals may consider working with a legal professional who has specific experience in negotiating alimony in similar, complex situations. The financial aspects of these calculations can be incredibly detailed; you want to do everything in your power to protect your financial future.
Alimony Modifications – When Circumstances Change
Alimony calculations and decisions are taken seriously by Colorado courts. That said, the awards can be modified, over time, if necessary. In order to effect modification, you must file a request with the court and show that one of the involved parties has had a sudden increase or decrease in their income, a loss of assets, sudden illness, or a change in the needs of the children.
Be aware, both the receiving spouse and paying spouse can file for modification, resulting in an increase or decrease in spousal support. An alimony modification attorney can help guide you through this process.
Price Family Law Can Guide You Through the Alimony Process
We Are Experienced in Spousal Support Negotiations
Deciding to divorce means you are ending one chapter of your life and embarking on another. This process is filled with changes and challenges. Protecting yourself and your future as you move forward is critical. Starting down this new road alone is ill-advised. Divorce consists of a host of legal decisions and actions, and you need appropriate guidance and counsel.
Price Family Law, led by Trista Price, is well-versed in all aspects of Colorado divorce, including the calculation and assignment of alimony.
As your attorneys, they will review your financial position as well as that of your soon-to-be ex-spouse and will identify all appropriate factors impacting alimony.
Their approach to service is based on active listening, understanding that moving ahead is impossible without a clear picture of where you have been and where you are currently. They appreciate that emotions often run high and pride themselves on being a calm voice that provides realistic and rational advice.
Alimony plays a significant role in many divorce cases in Colorado; Price Family Law works tirelessly to negotiate appropriate agreements in conjunction with the other aspects of the separation.
We Know How Alimony is Calculated in Colorado – Contact Us Today
If you are considering a divorce, engaging legal representation sooner rather than later is in your best interest. Time is a commodity that can be leveraged, especially with regard to alimony.
Price Family Law places a significant emphasis on building relationships with their clients; they treat them the way they want members of their family to be treated in similar situations. As such, they offer all new clients a no-cost consultation. Divorce can be emotional, and connection with your divorce attorney plays an important role in your experience. Contact them today at 720-615-1750 to schedule your free consultation and learn how Price Family Law can help you.
