Alimony and other forms of spousal support are meant to help a spouse become economically self-sufficient after divorce. Divorce typically results in significant changes to a person's financial situation. For example, you may end up losing the family home or not having access to resources that you previously enjoyed.

Many spouses also sacrifice their careers and lifestyles to raise children or do what's best for family stability. Because of the significant changes that arise after divorce, a family court may grant alimony to a spouse who isn't economically self-sufficient.

How it works

Alimony is typically determined on a case-by-case basis. Because each couple has a unique relationship and financial arrangement, the alimony amount will vary from one divorce case to another.

However, some people have argued that following a fixed formula for awarding alimony is necessary. The idea is that a formula will reduce discrepancies in decision-making and make the process more reliable. But is this the right approach to follow?

This piece will show you why alimony and spousal support should always be calculated on a case-by-case basis.

1.    Decisions can evolve with the times

The primary challenge with using a formula is that decisions will be made using past information. Formulas work by taking past data and developing an algorithm to predict future outcomes. Unfortunately, relationships evolve faster than one might think.

How a marriage was in the '90s is much different from how millennials marry in today's world. Furthermore, the law also evolves to keep up with current trends such as same-sex marriages, overseas marriages, and much more. By having a judge carefully review every case, more accurate decisions can be made that apply directly to a specific couple.  

2.    Extenuating circumstances can be considered

Extenuating circumstances may cause a spouse to make decisions that affect their long-term financial stability. For example, a mother might decide to quit her career and take care of her children. A parent may also spend time caring for a disabled child, which will limit their ability to earn an income. Such circumstances are difficult to incorporate into a rigid formula. Furthermore, prenuptial agreements may limit the effectiveness of using a formula to calculate spousal support. This is why a case-by-case approach is beneficial for determining such cases.

3.    A rigid system is easier to manipulate

Another challenge with using a formula is that it can be manipulated. People may be able to identify loopholes in the system and manipulate their income to pay as little in alimony as possible. And if this were to happen, spouses who really need the support may end up being stuck after divorce.

A case-by-case basis eliminates systematic manipulation that may bend the rules in favour of one spouse.

Contact a firm like Ray Swift Moutrage & Associates for more information.

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