What is Alimony?
From the 1980s to the 2020s, divorce rates have tended to be on the decline. However, this may not remain the case. Attorneys have seen a recent uptick in clients requesting divorce consultations. Some lawyers are predicting divorce rates could rise through 2025 due to various socioeconomic factors.
Because divorce rates have been on the downswing for so long, many people are unaware of the practicalities of divorce. This includes alimony. Most people know that alimony is money one partner pays to another, but many individuals’ understanding stops here, leading to misconceptions. Some people may even believe that alimony is something exclusively paid by ex-husbands to ex-wives or only to women with children. While alimony does often end up being paid by ex-husbands to ex-wives, this isn’t exclusively the case.
Alimony is money paid by a “supporting spouse” to a “dependent spouse” following the dissolution of a relationship. In North Carolina, alimony is regulated under statute § 50-16.3A. Alimony is meant to ensure that each spouse can maintain the lifestyle to which they have become accustomed during their marriage. Suppose there is a large income gap between the two partners in a relationship, or one does not generate income. In that case, the partner who makes less money (the “dependent spouse”) can petition the court for alimony from the “supporting spouse.” Depending on your financial situation, you may either petition for alimony or be petitioned by your former partner. This is especially true if one or both of you have large incomes. This is why contacting one of our team’s experienced family attorneys can be crucial in a divorce case.
How is Alimony Determined in North Carolina?
Per § 50-16.3A, “the court shall exercise its discretion in determining the amount, duration, and manner of payment of alimony.” This means there is no set method of determining which partner owes alimony, how much, or for how long. Different judges may have different methods of making a decision. Generally speaking, the court will look at a variety of factors, including but not limited to:
- Each Spouse’s Income During the Marriage
- Each Spouse’s Earning Potential
- The Length of the Marriage
- Each Spouse’s Non-Monetary Contribution (Child Care, Homemaking, etc.)
- The Age and Health of Each Spouse
- The Age and Health of any Children
- The Lifestyle to which Each Spouse Has Become Accustomed
These are only a few determining factors the court will consider when deciding whether one spouse receives alimony and, if so, how much. In a high-income divorce, alimony can also be relatively high. This is because the court considers what the dependent spouse’s life has been like before the divorce. For example, someone married to a corporate executive with a six-figure-a-year salary might not be able to smoothly transition to single life working a job that only brings in low-to-mid five figures. In an instance like this, the court might order the supporting spouse to pay the dependent spouse a significant sum in alimony to ease that transition. That means a spouse could either find themselves paying or receiving a considerable sum of alimony.
What Factors Can Impact Alimony in a High-Income Divorce?
Simply because one spouse makes more money doesn’t mean they will necessarily have to pay alimony. At the same time the court takes into consideration reasons why a dependent spouse should receive financial support, they will also consider reasons why the supporting spouse shouldn’t have to pay. Some of these considerations can cut both ways. For example, per § 50-16.3A, if the supporting spouse was unfaithful during the marriage, this can be grounds for alimony. However, if the dependent spouse was unfaithful, this can be grounds for the court denying them alimony. This means that, in the event of a high-income divorce, infidelity can be a determining factor in whether someone pays or receives large sums of money in alimony payments.
Another potential factor impacting alimony payment is prenuptial agreements. Prenuptial agreements are contracts signed by both parties before a marriage outlining what will happen to their assets in the event of a divorce. In many cases, a prenuptial agreement can circumvent concerns about alimony by stating what spouses’ financial responsibilities to one another may be in the event of a divorce. However, there are circumstances where the court can still intervene. Upon review, a judge may rule that a prenuptial agreement is unconscionable or unenforceable. This means a prenup is invalid. Reasons for an unenforceable prenup can include but are not limited to a judge determining that one spouse did not enter into the prenup willingly, that one spouse was misled as to the contents of the prenup, or that one spouse lied about their financial situation before signing the prenup. An experienced divorce attorney can review any prenuptial agreement you may have signed and determine whether it can work for or against you in a high-income divorce.
What Should I Do if I’m Going Through a High-Income Divorce?
Divorces are stressful experiences. They can be made even more stressful if large amounts of money are on the line. Depending on the circumstances of the case, a high-income divorce can result in one partner losing or receiving a significant amount of cash. This is why if you or a loved one are going through a high-income divorce, you should immediately contact Kreider Attorneys at Law. Owner and attorney Jonathan G. Kreider is a former judge with years of experience in family law. This means he can approach cases from the perspective of both an attorney and a judge, allowing him to provide clients with wise counsel and a purpose-driven approach. He and his team are here to serve you through your divorce and ensure you get what you deserve—and don’t pay anything you shouldn’t have to pay.
Divorce shouldn’t be left to chance. This is especially true if a large amount of money is at stake. If you or a loved one are going through a high-income divorce, don’t hesitate to contact Kreider Attorneys at Law today at 336-770-2017 to schedule a consultation.