Dispute Resolution Services (DRS) : Topics to be Resolved : Spousal Maintenance

Spousal maintenance refers to monthly, or other periodic payments, from one spouse to the other. The purpose is to assist the recipient in meeting his or her financial needs. Such payments are made while the separation or divorce process is pending and/or after finalization. The income tax term for spousal maintenance is “alimony”. While unmarried parties may agree to periodic payments, only actual alimony can be deducted by the payor on his income tax returns, and must be treated as taxable income by the recipient.

There are many factors which influence the amount and duration of spousal maintenance, including the financial resources of each party, the time and cost associated with training or retraining for appropriate employment, length of marriage and age of person seeking maintenance. In the case of a homemaker, Minnesota law suggests consideration of “the length of absence from employment and the extent to which any education, skills, or experience have become outmoded and earning capacity has become permanently diminished”.

In mediation, the parties can agree on whether or not spousal maintenance can be reviewed as circumstances change. This is typically part of a total settlement which includes child support and division of assets and liabilities.

While maintenance can be a difficult topic, DRS professionals assist our clients in analyzing the financial “building blocks” of spousal maintenance and reaching an agreement which addresses the most important needs of each person.

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