If you’re divorced and paying alimony to your ex-spouse, you’re likely very aware of the exact amount of money you pay them each month. If you come into an unexpected financial windfall, you may be wondering what impact it will have on your alimony payments. To learn more about your spousal rights and acquire representation, contact a Union County alimony attorney.
What is Alimony?
Alimony, also known as spousal support, is a mandatory payment that one spouse pays the other after they get divorced. It is typically paid in monthly installments for a designated amount of time or indefinitely.
There are a variety of reasons why someone may receive alimony. One spouse may pay the other to allow the lower-earning spouse to maintain the lifestyle the couple created during their marriage. In marriages, sacrifices are often made. Maybe one spouse did not attend college so that they could work to put their spouse through school, increasing their spouse’s education and earning capacity. Or perhaps one spouse quit their job to raise their children. In either of these cases, the spouse has a disadvantage in the workforce because of choices they made as a family. Spousal support can bridge that gap.
Will Alimony Increase Because of a Financial Windfall?
A financial windfall refers to a person receiving an unexpectedly large sum of money. Whether they did not know the money was coming or they thought it would be a significantly lower amount, a windfall is an unanticipated and large amount. This could come in the form of winning the lottery or receiving an inheritance that is way more than you thought it would be.
Generally no, alimony payments will not be increased due to a financial windfall. This is because alimony is typically a flat rate, not a percentage of the paying spouse’s income. Alimony is agreed upon at the time of divorce and will only be altered for a few reasons. An increase in the wealth of the paying spouse is not typically one of those reasons.
When Will Alimony Payments Change?
A court may decide to alter the required alimony amount for a few reasons. If the cost of living increases and your divorce agreement includes a cost of living adjustment (COLA) clause, your alimony payments can go up.
If the receiving spouse moves in with a new partner, the paying spouse may request that their alimony payments be lowered or terminated. Depending on the circumstances of this new relationship the request may be granted or denied.
If the receiving spouse becomes disabled then alimony payments may increase to allow them to keep afloat during their disability. On the other hand, if the paying spouse becomes disabled then they may request a decrease in alimony so they can use that money to support themselves during their disability.
Finally, if the paying spouse gets married and/or has a child, they may request a decrease in alimony payments. They may argue that they need the extra money to take care of their new family and raise their child.
