Money is often a contentious issue for divorcing couples, especially when it comes to dividing marital assets and setting maintenance (alimony) payments. A new law enacted January 1, 2015 simplified the process for calculating maintenance for parties with a combined gross income of less than $250,000. Before this law was passed, there were no overarching monetary guidelines, and courts considered numerous factors when deciding on a party’s alimony obligations. Now this calculation is a two-step process. The court:
- Takes both spouses’ incomes into account, subtracting 20 percent of the receiving spouse’s gross income from 30 percent of the paying spouse’s income; and
- Bases the duration of the payments on the number of years the couple was married.
Maintenance Amount Owed
Suppose that the paying spouse makes $150,000 a year, and the receiving spouse makes $60,000 a year. Thirty percent of $150,000 is $45,000, and 20 percent of $60,000 is $12,000. To determine the annual amount owed, the court would subtract $12,000 from $45,000 for a maintenance payment of $33,000. However, the court may deviate from this formula under special circumstances (similarly to how a court deviates from the standard child support formula).
Moreover, the receiving spouse’s income plus maintenance cannot exceed 40 percent of both parties’ combined gross income. In the above example, 40 percent of the parties’ combined income is $84,000. The receiving spouse makes $60,000 and, under the prescribed formula, receives $33,000 in maintenance. That exceeds the $84,000 maximum allowed by Illinois law. Thus, the spouse’s maintenance would likely be capped at $24,000 absent any special circumstances.
Duration of Maintenance Payments
How long a spouse pays or receives a maintenance payment is based on the duration of the marriage multiplied by a certain factor:
- Zero to five years of marriage multiplied by 0.20;
- Five to 10 years of marriage multiplied by 0.40;
- 10 to 15 years of marriage multiplied by 0.60; or
- 15 to 20 years of marriage multiplied by 0.80.
For example, if a couple divorced after 12 years of marriage, the receiving spouse would get maintenance payments for over seven years. Note that courts have discretion to order permanent maintenance or maintenance equal to the number of years married if the marriage exceeded 20 years.
Are You Entitled to Maintenance Payments?
Before making an alimony calculation, the court must determine whether one spouse is entitled to receive such payments. Some factors courts consider include:
- Each party’s income, apportioned marital property and nonmarital property;
- Each party’s earning capacity (both present and future);
- The standard of living established during the marriage;
- Whether the party seeking maintenance delayed education or employment opportunities for domestic duties;
- Each party’s age, physical condition and emotional condition; and
- Any other equitable factor.
Our Schaumburg family law attorneys can help ensure that you receive–or pay–an equitable maintenance amount based on this new formula and any relevant circumstances. Contact Glasgow & Olsson today for a consultation. We can assist those in the Chicago area and surrounding suburbs.