Key Factors Determining Alimony Awards in North Carolina
Understanding Alimony in North Carolina: The Foundation
Under North Carolina law, alimony, commonly referred to as spousal support, is periodic financial assistance and support paid from one spouse to the other spouse to help the dependent spouse meet his or her needs. These periodic support payments are typically ordered for a specific amount of time. North Carolina courts can also require a spouse to pay alimony as a lump sum.
An award of alimony is a final determination on the issue of spousal support, while post-separation support is a temporary determination of financial support to be paid.
Unlike child support, there is no calculator or precise formula to determine how much alimony is paid or for how long alimony is paid. As a result, North Carolina judges have broad discretion in alimony cases to decide how much, if any, spousal support should be paid by one spouse to the other spouse and for how long.
The Threshold Question: Dependent and Supporting Spouses
The North Carolina alimony statute, much like post-separation support, provides that to be entitled to receive alimony, one spouse must be identified as a “dependent spouse” and the other spouse as a “supporting spouse.”
A dependent spouse is one who is financially dependent upon the other spouse to maintain their reasonable standard of living. A dependent spouse must have insufficient income or assets to meet their reasonable financial needs to support their standard of living.
A supporting spouse is one who has, during the marriage, contributed to the other spouse’s financial well-being as the financial breadwinner of the family. Typically, there is a significant income disparity between the supporting spouse and the dependent spouse.
If the spouses’ incomes are relatively close to one another or if both spouses’ individual incomes can support their own individual expenses, then there may not be a dependent or supporting spouse, as neither spouse is substantially dependent upon the other to provide financial support.
How the Amount and Duration of Alimony are Determined
Under North Carolina law, a Court has wide discretion in calculating the amount of alimony to be paid, how long alimony is paid, and the manner of payment of alimony.
There are sixteen different factors under the law that Judges may consider to decide an alimony claim, including the following:
- Any marital misconduct committed;
- The earnings and earning capacity of each spouse;
- The spouses’ ages and conditions;
- Earned and unearned income, such as employer benefits, retirement benefits, or social security benefits;
- The duration of the marriage;
- The contribution of one spouse to the job training or increased earning power of the other spouse;
- The effect of a spouse providing care for a minor child;
- The standard of living during the marriage.
- The education, employment history, and time necessary to find employment for a spouse;
- The assets and debts of each spouse;
- The property a spouse brought to the marriage;
- The contributions of a spouse as a homemaker during the marriage;
- The relative needs of each spouse;
- The tax consequences of the alimony award.
- Whether income was previously considered in the equitable distribution (property division) of the spouses’ marital estate, and
- All other circumstances which the Court finds just and proper
The Impact of Marital Misconduct on Alimony
Marital misconduct includes various behaviors during the marriage and prior to the date of separation such as illicit sexual behavior, involuntary separation due to a criminal act by a spouse, abandonment of a spouse, cruel or barbarous treatment endangering the life of the other spouse, indignities making the other spouse’s life intolerable and burdensome, reckless spending and waste or marital funds, excessive use of alcohol or drugs to make the other spouse’s life intolerable, and failure to provide necessary financial support during the marriage making the other spouse’s life intolerable and burdensome.
While marital misconduct is only one of many factors considered when calculating alimony, it has a unique role in that a finding of one type of marital misconduct can result in the court denying alimony for the dependent spouse or requiring the supporting spouse to pay alimony.
If the dependent spouse voluntarily engaged in illicit sexual behavior (adultery) prior to the date of separation, the dependent spouse seeking alimony is barred from receiving alimony. Conversely, if the supporting spouseengaged in illicit sexual behavior (adultery) prior to the date of separation, the Court must order alimony to the dependent spouse. If both the supporting and dependent spouses committed adultery, the court has complete discretion and may or may not award alimony depending on all of the other various circumstances of the case.
Aside from adultery, the other forms of marital misconduct may be considered by the Court when determining alimony. Judges have the discretion to weigh these factors as they deem appropriate when determining whether to award alimony and, if so, the amount and duration of alimony.
Key Financial Factors in Alimony Determination
Each spouse’s income is a crucial factor in an alimony award. The Court considers each spouse’s current income, future earning potential, tax returns, significant investments, the marital estate, and other evidence to determine the income of each spouse.
The court also considers the reasonable needs and expenses of each spouse on virtually every category of expense on a monthly basis, such as housing, utilities, groceries, home supplies, vehicle costs including gas, insurances, cell phone and internet services, uninsured medical and therapy costs, clothing, eating out and entertainment, subscriptions, vacations, and pets.
Even if the dependent spouse’s income is not sufficient to meet his or her reasonable needs and expenses, the Court does not automatically award alimony. Instead, there must also be a finding that the supporting spouse has the ability to pay alimony after weighing the supporting spouse’s income against his or her own reasonable needs and expenses.
Personal and Marital Circumstances Affecting Alimony
While there are sixteen factors the court considers when determining alimony, some prove more meaningful than others.
The length of the marriage is often a significant factor in the duration of any alimony award. Usually, longer marriages result in longer alimony durations. In some rarer cases, lengthy marriages can result in indefinite alimony awards, which may run until the death of the supporting or dependent spouse.
The age, mental, and physical health of each spouse can be a crucial factor as well. If a spouse is retired or near retirement, that may factor into the court’s decision as to the duration of periodic payments for alimony or the amount of those payments. If a spouse is disabled and unable to work, the court may award alimony for a longer period than in other cases with a similar length of marriage.
While the Court considers the accustomed standard of living during the marriage, there may not be enough available income for each spouse to live in the same manner in two homes as they did in one home as a married couple. In such scenarios, Judges will determine which expenses remain reasonable versus which expenses are no longer reasonable in light of current circumstances.
Where a spouse has contributed to the marriage as a homemaker, the Court may award alimony for a longer duration to allow the spouse requesting alimony time to enter the workforce and develop his or her career. This determination will depend on how long such a spouse has been out of the workforce, as well as what career they may have held prior to the marriage.
Miller Cushing Holladay’s Expertise in Alimony Cases
At Miller Cushing Holladay, we practice exclusively in North Carolina family law, which means we have a wealth of experience in the complexity of calculating alimony claims and understanding the judicial discretion and tendencies of North Carolina alimony cases. When you choose Miller Cushing Holladay for your North Carolina alimony case, you will draw upon the knowledge and expertise of a team of Charlotte family law lawyers with more than 80 years of collective experience, including Board Certified Specialists in Family Law.
Our experienced alimony lawyers will work to determine the best legal strategy for your situation. We have attorneys ready to assist, whether you need help seeking an alimony settlement outside of court or experienced, proficient advocacy at trial.
Whether you are a supporting spouse seeking to minimize the amount or length of spousal support or a dependent spouse seeking to maximize the amount or length of spousal support, we have represented countless clients through North Carolina divorce and alimony cases and have the knowledge, skill, and expertise to negotiate favorable alimony agreements or vigorously litigate in court.
Why Choose Miller Cushing Holladay for Alimony Guidance?
Having an experienced family law attorney is critical to the best possible outcome for your situation. We will schedule an initial consultation where you will meet with one of our North Carolina family law attorneys who will educate you on your legal rights and options, but also explain how we’ve seen countless other cases play out through settlement and the courts from our years of experience.
During the initial consultation, your attorney will provide an approach they believe best matches your desired outcome and what your case will need. Each situation is different, and some cases are best served through a collaborative process outside court, while others necessitate an aggressive approach through the court system. Either way, it is crucial for you and your attorney to understand the objectives and the best possible way to achieve them.
An alimony claim is a financial matter, and at Miller Cushing Hollada, we pride ourselves on regular discussions with clients as to the financial costs of legal action versus the risks and benefits of doing so. This cost-benefit analysis for our clients is a key component to keeping clients well-informed to maximize your outcome and minimize your legal time, costs, and energy.
Frequently Asked Questions
Is there a calculator or formula for alimony in North Carolina?
No, unlike child support, there is no calculator or formula to calculate alimony. Instead, the Court looks to the income and assets of each spouse and whether a spouse can meet their reasonable financial needs and expenses or whether they need financial support from the other spouse to do so.
What makes someone a “dependent spouse” for alimony purposes in North Carolina?
Any spouse actually and substantially dependent upon the other to meet their reasonable needs and expenses is a dependent spouse. In other words, if a spouse cannot afford their lifestyle based on their own income and is in need of the other spouse’s financial support, they will typically be considered a dependent spouse.
How does adultery affect alimony in North Carolina?
A dependent spouse is barred from receiving alimony if they committed adultery prior to the date of separation. However, if the supporting spouse also committed adultery prior to the date of separation, the court has discretion to still award alimony to the dependent spouse.
What are the most important financial factors a judge considers for alimony?
While many financial factors matter when determining alimony, the most important financial considerations for Judges when determining alimony are the parties’ respective income and expenses. A dependent spouse’s budget shortfall and a supporting spouse’s budget surplus will largely define the amount of alimony awarded.
Can a spouse who was primarily a homemaker receive alimony in North Carolina?
Yes, North Carolina law specifically mentions that the contributions of a spouse as a homemaker should be considered when determining alimony. When determining alimony for such a spouse, the Court will look to that spouse’s contributions to the household and the other spouse’s career, as well as their future earning potential, especially if they have been out of the workforce for years.
Does the length of the marriage impact the duration of alimony payments?
Yes, the length of the marriage is one of the most important determinations for how long alimony will be awarded. Longer marriages typically result in longer alimony durations, whereas shorter marriages will typically result in shorter durations of alimony payments.
Will my health or age affect whether I pay or receive alimony?
Yes, health and age are key components the court considers in whether to award alimony. These factors typically affect the duration of alimony more than the amount of alimony.
Can alimony be awarded if both spouses engaged in marital misconduct?
Yes, Judges may still order alimony if both parties have engaged in marital misconduct, even if both parties commit adultery. In such a scenario, the Judge is free to use their discretion to determine if and how the parties’ marital misconduct should impact the amount and duration of alimony awarded.
