If you are divorcing, and trying to determine what route your alimony payments will take— understand that there are options. While the court has the final say, you and your to-be former spouse can work through the options on your own as well. Alimony options for payment typically will vary depending on a few factors.
From income level, way of life before divorce, to who played homemaker and who played ‘breadwinner’. All of these things go into the consideration. But, before you go into this process— you should understand it. So, following, you will receive a quick run through of the 5 types of alimony and when they’re typically awarded. That way, you can begin to prepare for what may come.
Alimony Options: Understanding Different Alimony Agreements
What makes calculation methods differ?
First things first, this is extremely important to understand. There is often a bad taste left in the paying spouse’s mouth, but merely because they don’t understand. You worked for this money, sure, but so did your spouse by deciding to sacrifice their career in exchange for yours.
A few factors that can affect length of time, and amount:
- Length of marriage
- Length of separation
- Income of both parties
- Future income potential
Type 1: Permanent Alimony
Permanent alimony means that the alimony payments decided upon will be paid out indefinitely. If you’re receiving permanent alimony payments, you will continue to receive them for your entire lifetime. There is the possibility of renegotiation in the case that, say, you remarry. But, barring this circumstance or a few similar ones— it is as it seems… permanent.
Type 2: Temporary Alimony
Temporary alimony is an alimony option that one spouse receives during separation and before divorce. It can be used to cover daily expenses, court costs, divorce costs, and the like. This type of alimony is obviously temporary, but is typically the first step before you move to permanent alimony
Type 3: Reimbursement Alimony
Reimbursement alimony is typically goes to a spouse that, while in the relationship, was paying a personal cost for the other. Those personal costs could be to help pay educational costs, or even the cost of starting a business. This typically occurs when the assisting spouse never had the chance to reap any benefit of the receiving spouse’s business, education, etc.
Type 4: Rehabilitative Alimony
Rehabilitative is one of the alimony options that is use quite frequently. Rehabilitative alimony is basically there to provide financial support for the spouse that is not yet, but will be financially independent. This type of alimony is only for a specific amount of time, versus permanent alimony.
Type 5: Lump-Sum Alimony
Lump-sum alimony is typically an option that both spouses will agree upon. Instead of monthly installments the paying spouse will make a one time, lump-sum payment. Typically, this will occur if the receiving spouse wants to part ways with property of high-value items. You can find a more in-depth of this type of alimony here.
Ultimately, there is no one-size-fits-all for alimony
There are quite a few when it comes to alimony options. But, that’s because there are quite a few different situations when it comes to finances of divorce. You’ve spent years of your life supporting one another, and that doesn’t stop when your relationship does. We wish you luck in figuring out the route that works best for you from here— and we happily offer our services if you need them.