In this very simple hypothetical setting, the husband, John, and his wife, Jane, are getting divorced. John and Jane have two children, with primary physical custody awarded to Jane.
While men can, in theory, receive an alimony award, husbands in Utah typically out-earn their wives in the majority of divorce cases, which makes the award of alimony to men a rarity. So we will calculate alimony based upon John earning more than Jane.
John’s gross monthly income = $5,000
If John or Jane were self-employed, we would subtract any necessary (not merely legal, but necessary) business operating costs from his/her income to arrive at a before-tax gross income amount.
Jane’s gross monthly income = $1,300
John’s net income is calculated, for alimony purposes, as his net income less his child support obligation (remember, Jane was awarded primary physical custody). Where John’s gross income is $5,000 and Jane’s gross income is $1,300, John’s child support obligation to Jane would be $1,047 per month (believe it).
John’s net income would be calculated by subtracting state and federal income taxes from his gross income.
John’s net income, after subtracting federal and state income tax, = $3,970 after tax net income – child support of $1047 = $2,923 net income
Jane’s net income = $1,180
John’s net income + Jane’s net income = $4,103
Combined spouse’s net income (i.e., $4,103) ÷ 2 = $2,052
$2,052 – Jane’s net income (i.e. $1,180) = $872, which roughly equals Jane’s alimony award on an income-equalization basis.
Keep up the great work and I’ll try to come back for more posts like this one.
Your formula makes PERFECT sense to me and has NOTHING to do with a standard of living or current monthly budget of either spouse. Why do some sites seem to make this a factor? At the request of my wife and to keep the peace, I moved out. She continues to spend money freely at her same style of living – part of the reason we got divorced too. I live within my means and conserve. However, if we factored living styles into the alimony equation, she would be given more than her fair share so she can continue to live beyond her means (with my money). In reality, she should be downsizing her home and cutting expenses after the marriage. I am afraid of a court’s decision to look at how I spend my money and then saying “I guess you don’t need much to live on so we’re giving extra to your wife”. Does this happen?
Mike: You asked, in essence, ” Is it possible that a court would punish a frugal spouse by awarding what he/she conserves by awarding that surplus as alimony to a profligate spouse, effectively rewarding irresponsible spending?” The answer is: Absolutely. No, it doesn’t always happen, but it happens all too often. I wish I could take credit for this, but this saying comes from a fellow Utah attorney, John Schindler, and Mr. Schindler is absolutely right: “Good behavior in a marriage is bad behavior in a divorce and vice versa.”
what I would like to know is, does she have the rights to get alimony from me when the divorce is her decision. I don’t want it at all, but I’m not willing to be walked all over and give her whatever she wants. I read on wiki that with alimony there is a fault based aspect behind it, is this true.