Calculating Spousal Support in an Unpredictable Economy

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PreferencesIn a divorce the purpose of maintenance is to ensure that the non-monied spouse continues to live in the same or similar lifestyle as they did while they were married, or until the non-monied spouse can become self sufficient. But what if your spouse is used to a lavish, luxurious lifestyle and then suddenly you find yourself taking a pay cut or even worse laid off? How will the court calculate support? Today’s unpredictable economy has left many people feeling unstable when it comes to their finances.

In a divorce the purpose of maintenance is to ensure that the non-monied spouse continues to live in the same or similar lifestyle as they did while they were married, or until the non-monied spouse can become self sufficient. But what if your spouse is used to a lavish, luxurious lifestyle and then suddenly you find yourself taking a pay cut or even worse laid off? How will the court calculate support? Today’s unpredictable economy has left many people feeling unstable when it comes to their finances.

New York Law Journal recently published an article titled, “Determining Support in a Time of Changing Economic Reality,” by Lee Rosenberg. The article cites to
S.A. v. L.A. 977 N.Y.S.2d 870 (Sup. Ct. 2013), which is a New York case of first impression decided in Westchester County. The Court determined that the income rules, which are typically used in child support proceedings, may also be used to determine an application for temporary spousal maintenance. The decision resulted in a modification of the wife’s application of maintenance, based upon a dramatic decrease in the husband’s annual income from 2012 to 2013.

The wife in this case sought temporary maintenance from the husband in the amount of $17,000.00 monthly, based upon the husband’s income shown on his 2012 tax return in the amount of $820,000.00. However, the husband’s income for tax year 2013 dropped to $240,000.00, when, after being terminated from his old job, he was forced to find new employment.

The core issue in this case was whether the Court should use the income figures from tax year 2012 or the income actually gained during 2013? The Court observed, the parties’ lifestyle and standard of living in 2013 exceeded greatly their actual means, which became a relevant factor in how the Court decided the temporary application for maintenance.

As a result the Court concluded that the husband’s “imputed” income from 2013 was $240,0000.00. Using that figure, the Court awarded the wife monthly temporary maintenance in the amount of $5,737.00. This was a dramatic decrease from the 17,000.00 she had sought in her order to show cause application. The court found that the wife’s requested amount exceeded her legitimate monthly expenses. The Court stated in its conclusion that the parties “are now suffering the consequences of their prior high standard of living…and that it is time for the parties to recognize the financial reality they may well face in the future.”

If you are looking to obtain a divorce and are experiencing issues with spousal support, Long Island Divorce Attorney Jay D. Raxenberg can help!

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