What Do You Need to Know About Spousal Maintenance in Minnesota?
Many financial issues must be worked out as part of any divorce. One topic that generates many questions from clients is spousal maintenance — also known as alimony — as it is referred to in Minnesota. Spousal maintenance is paid by one spouse to another following a divorce. It is meant to ensure that the lower-earning spouse has the funds necessary to meet their needs and maintain their quality of life until they can become financially independent.
What Are the Two Types of Spousal Maintenance?
Temporary Spousal Maintenance
This type is awarded for a fixed period following the divorce. Often, one spouse may need some time to regain their financial footing. Temporary spousal maintenance gives them the resources to survive during this time while they search for a full-time job, secure housing, or seek the education or training necessary for a career.
Permanent Spousal Maintenance
The term "permanent" can be misleading because this variety typically does end at some point. It lasts for a longer period and often does not have a set end date. Instead, it will usually be awarded for an unspecified length of time, and the court can modify or terminate it as the spouses' situations change. This long-term type is less frequently awarded but may be appropriate after the breakup of a long marriage or in cases where one spouse will never be able to become self-supporting.
How Is Spousal Maintenance Calculated?
Minnesota law does not contain an exact formula for determining how much spousal support should be awarded. Instead, it provides leeway for judges to make decisions based on various factors, including the recipient's finances and capability to provide self-support, the standard of living during the marriage, the length of the marriage, whether the recipient has full custody of children, the payor's financial ability to provide maintenance, and the recipient's contribution to marital assets.
One factor that Minnesota courts do not consider is whether one individual was at fault for the divorce. Infidelity or other issues within the marriage will not affect whether spousal maintenance is awarded or the amount given.
Under What Circumstances Can Spousal Maintenance Be Ended or Modified?
The remarriage of the recipient is the most common circumstance that will cause alimony to be halted. Minnesota law also allows for spousal maintenance to be stopped in some cases if the recipient is cohabitating with a partner. The court may consider a modification if the financial situation of either individual changes dramatically.
What Is a "Karon" Waiver?
A "Karon" waiver is an agreement that prevents both parties from seeking modifications to their spousal maintenance award, regardless of their future finances. It must be negotiated and agreed upon by both spouses. You should never sign a "Karon" waiver without consulting a skilled divorce attorney, as it can severely limit your future options.
How Is Spousal Maintenance Taxed?
Following the passage of the federal Tax Cuts and Jobs Act (TCJA), alimony is no longer tax deductible for the payor, and the recipient does not have to count it as income. Discuss your tax situation with a financial expert to ensure you fully understand the impact your divorce and spousal maintenance may have on your taxes.
An attorney from TVA Law Office can ensure that you are treated fairly in negotiations and court. Contact our law firm at 651-571-8547 to discuss your case and legal options.
This article is for general informational purposes only and does not constitute legal advice. Contact TVA Law Office at 651-571-8547 to discuss your specific situation.
