8 Crucial Questions About Spousal Support You Deserve Answers To

People have a lot of questions about spousal support. We understand why. A divorce, no matter how amicable, can create stress. There are typically a lot of things to unwind between both parties. And, no matter if you’re the filing party or the respondent, you want to know what you are likely to be paying or receiving so that you can prepare and plan appropriately. 

At DBMA, one of our goals is to make this often confusing process easier to understand. Here are answers to some of the questions we get asked most often about spousal support in Oregon.   

What is spousal support?

In many Oregon divorces, the court will order one party to pay the other what is called spousal support. Spousal support is intended to help the receiving party with financial support so that they can meet their basic needs, preserve a lifestyle they’ve grown accustomed to, or stabilize them on the path to self-sufficiency. 

The court recognizes three distinct types of spousal support:

  • Transitional support, which is intended to provide a former spouse assistance while they, either through training or continuing education, obtain skills that allow them to rejoin the workforce. 

  • Compensatory support, which is awarded in those circumstances where one party has received what the court sees as significant financial contributions to their education or career, or where there is a perceived imbalance in the assets awarded in the divorce.

  • Maintenance support, which is most commonly determined by the court for longer-term marriages with a high disparity in income and earning capacity. 

Spousal support does not necessarily occur in all divorces. Spousal support can also sometimes be a combination of all three types of support, depending on the facts of each case  and terms of the agreement or order.

How is spousal support determined?

The process for calculating spousal support is distinctly different from that of child support, which is based on findings using the State of Oregon’s Child Support Calculator. 

The court’s goal in determining spousal support is to seek what is “just and equitable under the circumstances.” What does this mean? Well, based on a number of considerations, including how long you were married for, your age, health, professional experience, earning capacity, parenting plan, healthcare costs, debt allocation, standard of living during the marriage, and more to decide the amount of support owed, and how long it is owed for. 

Can spousal support be backdated?

In the instance that there is a significant change in the financial status of a party, then the court may modify the amount of support awarded. If the support is modified, either greater or less than what it was in the previous judgement, then the new amount can be backdated to the date that the modification was served. It wouldn’t be backdated further. 

Can spousal support be paid in a lump sum?

In the state of Oregon, spousal support can be paid in installments (usually on a monthly basis), or can be given to the receiving party in a single lump sum payment. 

Depending on the financial situation of the parties and the circumstances of the divorce, the presiding judge may order the spousal support be paid in a lump sum but monthly installments are far more likely. 

How is spousal support calculated after retirement? 

Some might assume that spousal support goes away after retirement, but this is not necessarily the case. If a couple divorces before they retire and the paying party’s income is significantly changed by retirement, then they may file to have their spousal support judgement modified. 

If granted, the continued support would be based on the payer’s retirement income vs. their income when they were fully employed. Also be aware of the fact that if you are divorced, retired, and receiving Social Security benefits, that spousal support is awarded in light of income from all sources.

Do you claim spousal support on your taxes?

The IRS states that certain spousal support payments are deductible by the payer, and that the recipient is required to include it as income when filing their taxes. 

But it’s also important to state that when you were awarded your divorce will affect whether or not you can make certain deductions. 

According to the IRS, “You can't deduct alimony or separate maintenance payments made under a divorce or separation agreement (1) executed after 2018, or (2) executed before 2019 but later modified if the modification expressly states the repeal of the deduction for alimony payments applies to the modification. Alimony and separate maintenance payments you receive under such an agreement are not included in your gross income.” 

Speak to an accountant if you have additional questions about spousal support deductibility. 

When does spousal support end?

Spousal support awards either have an end date or are designated “indefinite awards” which means there is no built-in end date and they continue until further order of the court or the death of either party. Some assume that spousal support automatically ends once the party receiving support is remarried. This is not always the case and such analyses are very much fact specific. 

For instance, in those cases where property division is deemed inequitable, spousal support may continue until an appropriately equitable sum awarded to the other party is reached. 

Spousal support can be tricky. You deserve counsel dedicated to protecting your rights! The DBMA Family Law team is here to provide you clear and just guidance, and are committed to helping you achieve the best outcome possible.
Contact us today for your family law consultation!