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  1. #1
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    Aug 2014
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    Default Alimony After 5-Year Marriage

    My question involves a marriage in the state of: Illinois

    I'm currently going through divorce and I would like to have a better idea about how much alimony I might be paying.

    I've been married for 5-year with two kids , my soon-to-be ex is a SAHM and hasn't worked for the past 4 years. She has a college degree from a good university and she's 30-year old . The only debt we have is the house mortgage. I'm making more than 100k/annually. I spend a good amount of time with my kids , I see them at least 4 days/ per week and spend every other weekend with them.

    I plan to offer two years alimony and the amount will be 20% of my income(I'll also pay child support). After the house gets sold, the money will be split 50-50.

    Does this offer sound fair?

  2. #2
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    Default Re: Alimony After 5-Year Marriage

    Yep, she is usually good for one year of marriage for each month of alimony. This is very generous.

  3. #3
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    Default Re: Alimony After 5-Year Marriage

    The bottom line is she is basically entitled to 50% of equity acquired during the marriage and potentially about 5 months alimony if any. I agree paying the 5 months up front is a good idea. Then follow state support guidelines. Have it written in to the order it should be reviewed periodically so your support can be reduced when she gets a job. They will be going to school soon so child care will not be an issue unless you allow her to move far enough away you cannot be the provider for afternoon or night shifts. Have that worked in. Make sure you get reasonable visitation also. It sounds like she might have an inkling to get a boyfriend and wants time to play on your dime as a SAHM.

  4. #4
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    Default Re: Alimony After 5-Year Marriage

    Quote Quoting Disagreeable
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    The bottom line is she is basically entitled to 50% of equity acquired during the marriage and potentially about 5 months alimony if any. I agree paying the 5 months up front is a good idea. Then follow state support guidelines. Have it written in to the order it should be reviewed periodically so your support can be reduced when she gets a job. They will be going to school soon so child care will not be an issue unless you allow her to move far enough away you cannot be the provider for afternoon or night shifts. Have that worked in. Make sure you get reasonable visitation also. It sounds like she might have an inkling to get a boyfriend and wants time to play on your dime as a SAHM.
    Where does this 5 months of alimony come from? Unlike child support, there are no formulas to calculate what alimony should or will be if left up to the court.

    The spouse can ask for anything he/she wants and if the court agrees with the argument and finds it just and equitable it may be granted base on many things.

    •the income and property of each spouse, including assets awarded to the spouse in the divorce
    •each spouse’s needs
    •each spouse’s current and future earning capacity
    •any reduction to the earning capacity of a spouse who put off education or career because of the marriage or to care for children of the marriage
    •how long it will take for the spouse seeking alimony to obtain education, training, and employment
    •whether or not the spouse requesting alimony can become self-supporting
    •whether or not it’s appropriate for the spouse requesting alimony to seek work because he or she is the custodian of a child
    •the couple’s standard of living during the marriage
    •how long the couple has been married
    •each spouse’s age and physical and emotional condition
    •any tax consequences resulting from the property division in the divorce
    •whether the spouse requesting alimony worked to support the other spouse’s education, career, or license, and
    •any valid agreement between the spouses.
    To name a few.

  5. #5
    Join Date
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    Default Re: Alimony After 5-Year Marriage

    I disagree completely with disagreeable about the whole one month of alimony for one year of marriage. That is not the norm in any state I am familiar with. Many states use the 1 year for every three years of marriage standard.

    I also disagree with the lump sum idea for one very specific reason. Adjusting the property settlement to allow for a lump sum is NOT TAX DEDUCTIBLE. Alimony IS tax deductible and that is a valuable deduction in OP's marginal tax bracket.

    Lets say that he gives her 40k in total. With Bud's idea his 40k costs him 40k. If he pays it out over two years with it specifically designated as alimony, it actually costs him 26k instead of 40k, due to the tax deduction. To me, that is a no brainer.

  6. #6
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    Default Re: Alimony After 5-Year Marriage

    Quote Quoting llworking
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    I disagree completely with disagreeable about the whole one month of alimony for one year of marriage. That is not the norm in any state I am familiar with. Many states use the 1 year for every three years of marriage standard.

    I also disagree with the lump sum idea for one very specific reason. Adjusting the property settlement to allow for a lump sum is NOT TAX DEDUCTIBLE. Alimony IS tax deductible and that is a valuable deduction in OP's marginal tax bracket.

    Lets say that he gives her 40k in total. With Bud's idea his 40k costs him 40k. If he pays it out over two years with it specifically designated as alimony, it actually costs him 26k instead of 40k, due to the tax deduction. To me, that is a no brainer.
    The court doesn't care if a settlement is reached with the respondents and it is in the settlement agreement. A lump sum settlement is not considered alimony if it is part of equitable distribution and it doesn't have to be paid out and therefore is not taxable. It is paid as part of EQ distribution along with all the other assets. It is not specified as alimony.

  7. #7
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    Default Re: Alimony After 5-Year Marriage

    Section 504 of the of the Dissolution of Marriage Act. It is not called alimony in IL it is called rehabilitative maintenance.

    Quote Quoting budwad
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    Where does this 5 months of alimony come from? Unlike child support, there are no formulas to calculate what alimony should or will be if left up to the court.

    The spouse can ask for anything he/she wants and if the court agrees with the argument and finds it just and equitable it may be granted base on many things.



    To name a few.

  8. #8
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    Default Re: Alimony After 5-Year Marriage

    Quote Quoting Disagreeable
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    Section 504 of the of the Dissolution of Marriage Act. It is not called alimony in IL it is called rehabilitative maintenance.
    Whatever it is called, it supports my contention that you can buy out alimony if the respondents agree and it is over.


    e) If the parties waive their rights to maintenance,



    neither party can in the future obtain maintenance from the other.
    Thank you.

  9. #9
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    Default Re: Alimony After 5-Year Marriage

    Quote Quoting Disagreeable
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    Section 504 of the of the Dissolution of Marriage Act. It is not called alimony in IL it is called rehabilitative maintenance.
    750 ILCS 5/504. It contains no such provision.

  10. #10
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    Default Re: Alimony After 5-Year Marriage

    Hmmmm, From what I read it clearly says the court can order one spouse to pay the other.

    (750 ILCS 5/504) (from Ch. 40, par. 504)
    Sec. 504. Maintenance.
    (a) In a proceeding for dissolution of marriage or legal separation or declaration of invalidity of marriage, or a proceeding for maintenance following dissolution of the marriage by a court which lacked personal jurisdiction over the absent spouse, the court may grant a temporary or permanent maintenance award for either spouse in amounts and for periods of time as the court deems just, without regard to marital misconduct, in gross or for fixed or indefinite periods of time, and the maintenance may be paid from the income or property of the other spouse after consideration of all relevant factors, including:
    (1) the income and property of each party, including

    marital property apportioned and non-marital property assigned to the party seeking maintenance;
    (2) the needs of each party;
    (3) the present and future earning capacity of each

    party;
    (4) any impairment of the present and future earning

    capacity of the party seeking maintenance due to that party devoting time to domestic duties or having forgone or delayed education, training, employment, or career opportunities due to the marriage;
    (5) the time necessary to enable the party seeking

    maintenance to acquire appropriate education, training, and employment, and whether that party is able to support himself or herself through appropriate employment or is the custodian of a child making it appropriate that the custodian not seek employment;
    (6) the standard of living established during the

    marriage;
    (7) the duration of the marriage;
    (8) the age and the physical and emotional condition

    of both parties;
    (9) the tax consequences of the property division

    upon the respective economic circumstances of the parties;
    (10) contributions and services by the party seeking

    maintenance to the education, training, career or career potential, or license of the other spouse;
    (11) any valid agreement of the parties; and
    (12) any other factor that the court expressly finds

    to be just and equitable.
    (b) (Blank).
    (b-5) Any maintenance obligation including any unallocated maintenance and child support obligation, or any portion of any support obligation, that becomes due and remains unpaid shall accrue simple interest as set forth in Section 505 of this Act.
    (b-7) Any new or existing maintenance order including any unallocated maintenance and child support order entered by the court under this Section shall be deemed to be a series of judgments against the person obligated to pay support thereunder. Each such judgment to be in the amount of each payment or installment of support and each such judgment to be deemed entered as of the date the corresponding payment or installment becomes due under the terms of the support order, except no judgment shall arise as to any installment coming due after the termination of maintenance as provided by Section 510 of the Illinois Marriage and Dissolution of Marriage Act or the provisions of any order for maintenance. Each such judgment shall have the full force, effect and attributes of any other judgment of this State, including the ability to be enforced. Notwithstanding any other State or local law to the contrary, a lien arises by operation of law against the real and personal property of the obligor for each installment of overdue support owed by the obligor.
    (c) The court may grant and enforce the payment of maintenance during the pendency of an appeal as the court shall deem reasonable and proper.
    (d) No maintenance shall accrue during the period in which a party is imprisoned for failure to comply with the court's order for the payment of such maintenance.
    (e) When maintenance is to be paid through the clerk of the court in a county of 1,000,000 inhabitants or less, the order shall direct the obligor to pay to the clerk, in addition to the maintenance payments, all fees imposed by the county board under paragraph (3) of subsection (u) of Section 27.1 of the Clerks of Courts Act. Unless paid in cash or pursuant to an order for withholding, the payment of the fee shall be by a separate instrument from the support payment and shall be made to the order of the Clerk.
    (f) An award ordered by a court upon entry of a dissolution judgment or upon entry of an award of maintenance following a reservation of maintenance in a dissolution judgment may be reasonably secured, in whole or in part, by life insurance on the payor's life on terms as to which the parties agree, or, if they do not agree, on such terms determined by the court, subject to the following:
    (1) With respect to existing life insurance, provided

    the court is apprised through evidence, stipulation, or otherwise as to level of death benefits, premium, and other relevant data and makes findings relative thereto, the court may allocate death benefits, the right to assign death benefits, or the obligation for future premium payments between the parties as it deems just.
    (2) To the extent the court determines that its award

    should be secured, in whole or in part, by new life insurance on the payor's life, the court may only order:
    (i) that the payor cooperate on all appropriate

    steps for the payee to obtain such new life insurance; and
    (ii) that the payee, at his or her sole option

    and expense, may obtain such new life insurance on the payor's life up to a maximum level of death benefit coverage, or descending death benefit coverage, as is set by the court, such level not to exceed a reasonable amount in light of the court's award, with the payee or the payee's designee being the beneficiary of such life insurance.
    In determining the maximum level of death benefit

    coverage, the court shall take into account all relevant facts and circumstances, including the impact on access to life insurance by the maintenance payor. If in resolving any issues under paragraph (2) of this subsection (f) a court reviews any submitted or proposed application for new insurance on the life of a maintenance payor, the review shall be in camera.
    (3) A judgment shall expressly set forth that all

    death benefits paid under life insurance on a payor's life maintained or obtained pursuant to this subsection to secure maintenance are designated as excludable from the gross income of the maintenance payee under Section 71(b)(1)(B) of the Internal Revenue Code, unless an agreement or stipulation of the parties otherwise provides.
    (Source: P.A. 97-186, eff. 7-22-11; 97-608, eff. 1-1-12; 97-813, eff. 7-13-12.)

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