Alimony and Equitable Distribution FAQs
The Divorce Attorneys of Dummit Fradin explain alimony, spousal support, equitable distribution of assets and debt, and how to protect your financial future as you go through the separation and divorce process in North Carolina.
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Alimony / Spousal Support
The first thing a judge must determine is whether a spouse is substantially dependent on the other. There are 16 factors judges typically look at, however, they are not limited to these. One of the most important factors is income, the wage gap between the partners. Outside of finances, the judge will also look at conduct. If there was an affair on the part of the person asking for alimony, they wouldn’t get any. However, the alimony payments could be higher if the affair was the other way. Ultimately, alimony is a complicated process with no set formula. That’s why it’s critical to have an experienced attorney on your side when dealing with this issue.
To receive alimony, the receiving party would have to show that the supporting spouse can pay it. This would include looking at their income and expenses. So, to prove that alimony is too expensive, the supporting party would need to provide:
- W2s
- Pay stubs
- Records of their monthly expenses including all insurance, rent/mortgage, and food costs.
The judge will consider everything and hopefully eliminate or substantially reduce the alimony payments if they are, in fact, too expensive.
A family law attorney answers some frequently asked questions about alimony or spousal support. Please note, alimony and spousal support in North Carolina are used interchangeably. And for alimony to be awarded, there needs to be a dependent spouse.
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Why is the dependent spouse entitled to any spousal support at all?
The court finds that the party that was making the majority of the income wouldn’t have been able to do that as effectively without the supporting spouse doing what they did within the home. So, the court doesn’t find it appropriate to simply let that spouse live on such a reduced income, they instead provide some type of support to allow them to live similarly to what they were accustomed to.
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How is alimony calculated if you’re the dependent spouse?
If you’re the dependent spouse, you would need to provide income statements if there are any and records of expenses. Your expenses would include going out to restaurants, getting your hair or nails done, anything that would make your life successful. Based on that, the court would determine what would be a fair and reasonable amount to provide you for support.
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How long is alimony paid?
Alimony is typically paid for half the length of time of the marriage. So, if you were married 12 years, alimony would be paid for 6 years.
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When do you need to file for alimony?
Alimony must be filed before the divorce is finalized. If it is not, then the right to alimony is waived. If alimony is handled in a separate agreement, it still needs to be officially filed before the divorce is finalized.
Equitable Distribution
Equitable distribution is how marital property is divided during a divorce.
The court first considers all the assets and debts accumulated by the couple since their marriage. While a 50/50 split might seem straightforward, the court also examines reasons why one spouse might deserve a larger or smaller share of the assets or debts. This ensures a fair, not necessarily equal, outcome. Different strategies and approaches to equitable distribution can be used to address each party’s needs, such as keeping the marital home or protecting retirement accounts. If you’re facing a divorce, consulting with a family law attorney is crucial to discuss your options and ensure a fair outcome. Call one of our experienced Divorce Attorneys today.
How do the courts deal with debt fairly in divorce when a couple’s debts outweigh their assets. This is rarely as simple as splitting the debt 50-50. The court will consider all the debt including all credit cards, loans, and anything that has accumulated since the date of the marriage, and try to offset the debt with the assets. The court will also look at the earning capacity of each party, each party’s age, and their health. After considering all these factors, then the court will come to as equitable (not equal) a split as possible.
If you want to keep your former spouse from withdrawing all your money from your shared bank accounts during the divorce process a temporary restraining order can be sought to keep one party from draining all the funds from a specific account or accounts. All the concerned party needs to do is to speak to their attorney, who will then go see a judge and request a hearing. Once that hearing occurs, if the judge finds there is sufficient reason to grant the temporary restraining order, then that day, the order is issued and the restrained spouse cannot drain the funds in the account.
If your going through a divorce you might be wondering how to protect your retirement account. Your retirement is a huge asset that, during a divorce, must be shared fairly between the spouses. However, there are massive tax consequences you could be subject to if you withdraw money from this account. There is a solution. A QDRO, qualified domestic relations order, is a federally recognized order that allows us to take money from one retirement account and put it in another retirement account without any tax penalty. And, if you are the party receiving funds from your ex-spouse’s retirement account, we need to make sure there is enough money in that QDRO to cover any tax penalty you may face should you choose to withdraw that money.
A Divorce Attorney details the factors the courts will consider when determining what happens to the marital home in a divorce. If both parties want to sell the home and split the proceeds, then that is what happens. However, if one party wants to keep the home, then the home will need to be refinanced into their name. They will need to qualify for that loan on their own through their bank. And they will also need to be able to afford the expenses of maintaining the residence above and beyond the mortgage. If refinancing is not possible or the bills are too expensive, then the home will need to be sold and the proceeds split between the spouses.
