New Formula for Spousal Maintenance: What You Need to Know

Because so much can be uncertain during the divorce process, the Colorado legislature recently passed a new law that provides one clear formula for determining spousal maintenance, or alimony. The new law, which became effective Jan. 1, 2014, puts Colorado in line with many other states that have used formulas for determining spousal support for years.

This new formula applies to marriages between three and 20 years in duration, where the combined income of the spouses does not exceed $240,000. If you fall between those limits, you may now more easily calculate your maintenance amount.

The new formula takes 40 percent of the higher income earner's monthly income, and then subtracts 50 percent of the lower earner's monthly income. Judges may also consider such things as marital property and whether there are children, in deviating from the formula. The period of support is based on the length of the marriage, ranging from one-third to one-half the length of the marriage.

Using these guidelines may help you have a better understanding of your financial situation after your divorce. If you don’t fall within the guidelines provided or you have any questions about your divorce or this formula, please contact Michal or Josh today.