Spousal Support
Spousal support, or what people think of as alimony, is called maintenance in Colorado. Maintenance is generally speaking a monthly payment that one spouse pays to the other spouse over a period of a time to equalize the financial position of the parties.
In determining the need for maintenance, the following factors are considered:
-each party’s gross income (i.e. your salary as a W-2 employee)
-the marital property given to each party
-the financial resources of each party
-the reasonable financial need as stablished during the marriage
Once the need for maintenance is established, a formula is used to help determine the term and amount of maintenance. This formula is used when the combined income of the parties does not exceed $240,000, the parties have been married for more than 3 years, and the parties have been married for less than 20 years. In determining the term and amount of maintenance, Colorado Courts consider the the ability of the payor spouse to meet his/her needs and pay maintenance, both parties’ earning capacities, the lifestyle of the parties during the marriage, the length of the marriage, and the economic and non-economic contributions of each spouse, and other factors.
Self-Employment and Income Fluctuation
Determining income for a person who is self-employed or whose income changes each year is a complex process. For a self-employed party or a party whose income fluctuates, his/her income may be much higher than what is reported on their tax returns. Many IRS business expenses are added back to determine a party’s income and sometimes it may be more appropriate to use an average of a party’s historical earnings to get his/her true income.
Income Imputation
If you or your spouse are unemployed, you may be imputed with income for purposes of determining maintenance and child support. Even though you are not earning income, you may be imputed or assigned a salary that you could reasonably attain based on your education, training, and experience. In certain situations, a vocational evaluation can be an important tool for determining a person’s potential income.