--- title: Our Blog - AMF Divorce | Spousal Support description: Spousal Support | From mortgage professionals to therapists to attorneys, the team at A.M. Financial works closely with these types of professionals. --- ## A.M. Financial - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Services](https://amf-divorce.com/divorce-transition-services) - [Services](https://amf-divorce.com/divorce-transition-services) - [Service Plan](https://amf-divorce.com/service-plan) - [Frequently Asked Questions](https://amf-divorce.com/frequently-asked-questions) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) [Book a Meeting](https://calendly.com/amymahlenmelander/consultdivorcefinancialplanning) Posts about # Spousal Support ## [Vocational Assessments in Divorce](https://amf-divorce.com/our-blog/vocational-assessments-in-divorce) November 12, 2025 When one spouse is unemployed, caring for children and household needs, or is viewed as being ‘under-employed’, a vocational assessment can play an important role in determining fair child and/or... [CONTINUE READING](https://amf-divorce.com/our-blog/vocational-assessments-in-divorce) ## [Empowering Clients and Attorneys in High-Conflict Divorce Cases: The Role of a CDFA](https://amf-divorce.com/our-blog/empowering-clients-and-attorneys-in-high-conflict-divorce-cases-the-role-of-a-cdfa) January 02, 2025 Navigating the financial complexities of divorce can be one of the most challenging aspects of the whole process. This is especially true in high-conflict cases, where disagreements over financial... [CONTINUE READING](https://amf-divorce.com/our-blog/empowering-clients-and-attorneys-in-high-conflict-divorce-cases-the-role-of-a-cdfa) ## [Four Sources to Consider When Restructuring Your Income Post-Divorce](https://amf-divorce.com/our-blog/four-sources-to-consider-when-restructuring-your-income-post-divorce) September 06, 2023 If you are a non-working spouse going through a divorce, it’s important to fully understand your sources of income and determine whether you need to return to work to supplement your maintenance... [CONTINUE READING](https://amf-divorce.com/our-blog/four-sources-to-consider-when-restructuring-your-income-post-divorce) ## [Part 2: Top Spousal and Child Support Questions: An Interview with Rachel Anderson, Family Law Attorney](https://amf-divorce.com/our-blog/part-2-top-spousal-and-child-support-questions-an-interview-with-rachel-anderson-family-law-attorney) April 16, 2023 In [part one of this post](https://mahlenfinancial.com/part-1-top-divorce-questions-aninterview-with-rachel-andersonfamily-law-attorney/), we introduced Rachel Anderson, [family attorney](https://mahlenfinancial.com/finding-the-right-divorce-attorney-6-questions-to-ask/) at [Anderson Allen, LLC](http://www.andersonallen.com/). Rachel works with divorcing couples in Colorado and has experience in all types of family law... [CONTINUE READING](https://amf-divorce.com/our-blog/part-2-top-spousal-and-child-support-questions-an-interview-with-rachel-anderson-family-law-attorney) ## [Stress Testing a Budget in Divorce](https://amf-divorce.com/our-blog/stress-testing-a-budget-in-divorce) January 14, 2023 Transitioning financially through divorce has many moving parts. Stress testing your strategy regarding how income and expenses can change your circumstances in the future is important to consider.... [CONTINUE READING](https://amf-divorce.com/our-blog/stress-testing-a-budget-in-divorce) ## [Financial Opportunities Surface Within Challenging Spousal Support Changes](https://amf-divorce.com/our-blog/financial-opportunities-surface-within-challenging-spousal-support-changes) June 01, 2022 The Tax Cut and Jobs Act (TCJA) that went into effect this year for divorcing couples has drastically changed the financial landscape for individuals from prior years. The most significant... [CONTINUE READING](https://amf-divorce.com/our-blog/financial-opportunities-surface-within-challenging-spousal-support-changes) ## [Will Spousal Support (Alimony) Continue to Be Tax Deductible in 2018?](https://amf-divorce.com/our-blog/will-spousal-support-alimony-continue-to-be-tax-deductible-in-2018) June 01, 2022 Currently, alimony is on the chopping block under the Tax Cuts and Jobs Act (TJCA), meaning there would be no deduction provided for the paying spouse and the receiving spouse would no longer... [CONTINUE READING](https://amf-divorce.com/our-blog/will-spousal-support-alimony-continue-to-be-tax-deductible-in-2018) ##### About Amy With compassion and patience, Amy focuses on her client’s unique priorities to build a financial road map that provides clarity to make informed decisions today regarding the future. ##### Links - [Home](https://amf-divorce.com) - [Services](https://amf-divorce.com/divorce-transition-services) - [Our Blog](https://amf-divorce.com/our-blog) - [About Amy](https://amf-divorce.com/about-amy) - [Contact Us](https://amf-divorce.com/contact-us) - [Schedule a Meeting](https://calendly.com/amymahlenmelander) ©2026 Copyright. All rights reserved. A.M. Financial provides supporting financial information, evaluation and analysis to be utilized by the client and the client’s selected attorney if directed, during the process of their divorce. ervices provided in regards to this agreement are solely fee-only and do not involve investment or security advice or insurance transactions. All information is financial in nature and should not be construed or relied upon as legal or tax advice. A.M. Financial IS NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL OR TAX ADVICE. Individuals are encouraged to seek competent legal and tax advice from professionals who specialize in divorce and tax laws in their respective state. Amy Melander (CRD #4692263) is an Investment Adviser Representative of OneDigital Investment Advisors, LLC (ODIA). ODIA and A.M. Financial are independent and unaffiliated entities. ODIA does not offer or provide divorce financial planning services and any statements and/or opinions expressed by A.M. Financial do not represent the views and/or opinions of ODIA.   This website is a publication of A.M. Financial. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Content should not be viewed as personalized investment advice or as an offer to buy or sell, or a solicitation of any offer to buy or sell the securities mentioned herein. A professional adviser should be consulted before implementing any of the strategies presented. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "When one spouse is unemployed, caring for children and household needs, or is viewed as being ‘under-employed’, a vocational assessment can play an important role in determining fair child and/or spousal support. Simply put, a vocational assessment is an expert evaluation of someone’s earning capacity or what they could reasonably earn based on their background, education, skills, and current job market conditions. The evaluator’s findings can then be used to establish “imputed income,” meaning the income a person is capable of earning, even if they’re not currently earning it. Understanding how vocational assessments work, when to request one, or understanding that your spouse can request one for you, can help both spouses plan more effectively for their financial future. For the Higher-Earning Spouse If you’re the spouse who’s been the primary earner, you might worry that your support payments will be based on the unfair assumption that your former partner can’t contribute financially. A vocational assessment can bring clarity and objectivity to that question. Pros: Objective evidence: A professional evaluator provides independent data on your spouse’s earning potential. Equitable support calculations: The court can base support on potential income, not just current (or nonexistent) income. Encourages self-sufficiency: The assessment can motivate your ex to reenter the workforce, reducing long-term dependency. Planning advantage: You can anticipate future support scenarios and budget accordingly. Cons: Cost: You’ll likely pay for all or part of the assessment, especially if you’re the one requesting it. Delays: Scheduling and completing the evaluation can add time to your case. Uncertainty: The evaluator’s opinion is just one factor; the court may still rule differently. Potential conflict: Requesting an assessment can heighten tensions, especially if your ex feels undermined by the assessment. For the Lower-Earning or Non-Working Spouse If you’ve been out of the workforce because you have been raising children, managing the household, or supporting your spouse’s career, the idea of a vocational assessment can be unsettling. But it’s not necessarily bad news. A good evaluator will consider your entire picture, including your education, experience, health, age, and family responsibilities. Pros: Clarity and direction: The report can highlight realistic career paths, training options, and earning potential. Empowerment: Understanding your marketable skills can support long-term independence and confidence. Transparency: A thorough evaluation ensures your financial capacity isn’t underestimated or exaggerated by guesswork. Negotiation tool: The report can be used to advocate for reasonable expectations around job reentry or retraining time. Cons: Pressure to return to work: You may feel pushed to work before you’re ready, especially if caregiving duties or health issues are involved. Possible overestimation: Some reports may assume an earning potential that doesn’t reflect your real-world situation. Emotional stress: Being evaluated after years out of the workforce can feel uncomfortable or invasive. Financial impact: If the court imputes a higher income than you actually earn, it could reduce your support. Plan Ahead Many divorcing couples don’t learn about vocational assessments until they’re deep into negotiations, and when it’s too late to plan around them. Whether you’re the higher earner or the lower earner, knowing that this tool exists early on can help you and your team (attorney, financial expert, or CDFA) propose support options that are fair and realistic. A vocational assessment is about understanding capacity. For one spouse, it can mean ensuring financial fairness; for the other, it can be a first step toward rebuilding independence and a realistic career path. Vocational assessments can be powerful tools in creating equitable financial outcomes, but they can also introduce complexity and emotion into an already complex and emotionally-charged process. With the right professional guidance and open communication, both parties can utilize the information as a roadmap toward achieving financial stability and balance after divorce. Understanding how imputed income affects support can significantly impact your long-term financial planning. Our team helps clients evaluate how vocational assessments and potential income findings may influence their budgets and settlement options. Contact us to learn more about how we can support you through the financial side of divorce.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "12/11/2025", "datePublished" : "12/11/2025", "headline" : "Vocational Assessments in Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-uCY19b.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/vocational-assessments-in-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Navigating the financial complexities of divorce can be one of the most challenging aspects of the whole process. This is especially true in high-conflict cases, where disagreements over financial matters can escalate to court proceedings. As a Certified Divorce Financial Analyst (CDFA), my role is not only to provide support to clients during the divorce process but also to equip attorneys with expert analysis and testimony that strengthens their case. In this blog, we’ll discuss how expert financial services can support clients and attorneys, particularly in high-conflict situations. Providing Expert Analysis and Testimony In cases where litigation is inevitable, attorneys need sound financial evidence to present to judges. This is where expert reports and testimony come into play. Some of the following are examples of assistance : Evaluating post-decree scenarios for spousal support termination: Assessing the financial implications of terminating spousal support at the payor's retirement, considering factors like Social Security timing, future financial stability of each party, among other factors. Assess post decree evaluations surrounding gains and losses attributable to asset division. Evaluating post decree financial review to determine the likelihood of undisclosed assets during initial divorce proceedings. Valuing separate property and pension benefits: Establishing fair valuations to avoid ambiguous asset division. Analyzing annuity structures and benefits: Determining how annuities division limitations and impact to overall financial impact to each party post divorce. Expert insights can add to a compelling attorney narrative and help legal teams better advocate for their clients. Many judges and magistrates will require analysis from a financial expert in order to substantiate financial claims. Being a Partner in High-Conflict Cases Attorneys are increasingly encountering high-conflict divorces where financial disputes take center stage. Partnering with a CDFA ensures that attorneys have the financial expertise needed to navigate these challenges. Whether it’s delivering an expert report, providing testimony, or working directly with clients to evaluate their financial options before heading to an expensive court trial, my goal is to provide transparency and help clients feel more confidence during the divorce process. In high-conflict divorce cases, every financial detail matters. Attorneys and clients benefit greatly from having a CDFA on their team, a professional who can deliver comprehensive financial analyses and testify as an expert when necessary. In addition, clients gain peace of mind knowing that their financial future is in capable hands. If you’re an attorney handling high-conflict cases, let’s discuss how I can support your team and your clients through expert analysis and testimony. Together, we can ensure that every financial detail is accounted for, paving the way for a more equitable resolution.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "02/01/2025", "datePublished" : "02/01/2025", "headline" : "Empowering Clients and Attorneys in High-Conflict Divorce Cases: The Role of a CDFA", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-jPmFyp-2048x1365.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/empowering-clients-and-attorneys-in-high-conflict-divorce-cases-the-role-of-a-cdfa", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "If you are a non-working spouse going through a divorce, it’s important to fully understand your sources of income and determine whether you need to return to work to supplement your maintenance payments and other income-generating assets. Even if your former spouse made a good living, the combination of a high cost of living in Colorado and your preferred lifestyle might mean it may be in your best interest to return to full-time employment and/or enroll in career training to become employable. In this post, we’ll outline the top four sources of post-divorce income to consider as you evaluate and restructure your finances during the divorce process, and what these income streams mean for future financial needs. 1. Income from Child Support If children are part of your divorce, you’ll likely be awarded child support until your children reach the age of 19 in Colorado. This payment is based on the number of overnights you have with your children, each parents’ income (including maintenance, if any), the age of the children, childcare needs, healthcare needs, and other potential costs. This child support payment can fluctuate if there are changes in the child’s living situation or income changes for the parents. Logistically, this income should be used to provide the same standard of living to the child as the other spouse, and because this income stream is temporary, it’s best to rely very little or at all on this contributing income for your lifestyle. Therefore, doing your best to a build a budget that does not require this income to pay your bills, qualify for loans, and pay for your own lifestyle choices is the most financially prudent direction from a long-term perspective because at some point this income will stop. 2. Income from Maintenance Finalized as part of your divorce settlement, Maintenance income is the result of income disparity between spouses. Maintenance, sometimes called rehabilitation support, can be structured several ways. The goal of Maintenance is to provide support for the lower-earning spouse to re-enter the workforce so that they can eventually provide for themselves financially, ideally by the time the maintenance payments end, or retire. In Colorado, the duration of Maintenance is usually based on the length of the marriage whereas the amount of Maintenance is based on each party’s annual income. Therefore, like child support, this income stream could change but at some point in the future, will end. The duration of Maintenance, along with your age, plays a large role in how this payment will impact your future. For example, if you receive Maintenance until you are eligible for retirement benefits, you may not need to return to the workforce. On the other hand, if you are 45 years old with a maintenance award of 10 years, you should work on your career and ways to supplement your maintenance income unless you have adequate assets to live off of for the rest of your life, essentially retiring early. Adequate retirement planning, no matter your age, could provide insight on whether you need to re-enter the workforce and at what level. 3. Income from Earnings If you do decide to work on your career and re-enter the workforce, you’ll undoubtedly have more power and control over your income. This stream of income can last forever and has ancillary benefits, such as retirement savings, healthcare, and other professional financial perks. Skills you acquire through going back into the workforce and the associated income you’ll earn with those skills can’t be taken away from you. Even if you get laid off, you’ll likely receive some sort of severance along with maintaining the skills you need to be employable elsewhere. Therefore, your earnings are an extremely valuable and empowering asset for a stable financial future. If you are raising kids, balancing a great number of priorities, and not accustomed to also working on top of these responsibilities, it can feel overwhelming to imagine full-time employment. If you are considering career training, evaluate the types of jobs that might fit your lifestyle. For example, while your children are young, consider careers that more commonly provide work-from-home options to help you balance your existing responsibilities. Since COVID, there are many more employers who offer work-at-home opportunities. Your earnings are the most flexible and abundant source of income and can be the most dependable asset in your financial future. 4. Income from Other Assets It’s possible that you’ll divide assets in your divorce that provide monthly income. These assets might include investment dividends and interest, rental property income, passive business income, and more. Depending on how these assets are managed and structured, they could provide steady income for a long period of time or disappear completely. It’s important to work with your financial advisor to evaluate the level of risk and reward you might encounter with these less common forms of income to make sure they last for as long as possible or are used in an appropriate manner that reflects your goals and priorities. If you don’t earn as much as your former spouse, consider conserving these assets or taking steps to reduce your risk. For example, rental property income can be fruitful until you can’t find consistent renters or need to make significant improvements to the rental home, which you may not have the funds to address. Similarly, these types of assets can lose substantial value and you may want to liquidate or withdraw the assets for specific purposes. Your financial advisor can help you retain and stretch the assets for as long as possible. At A.M. Financial, we provide support to individuals going through a divorce by designing budgets that align with financial goals, discussing asset division strategy, and modelling retirement plans. We offer a free consultation to learn more about your unique situation. Contact us to schedule yours today.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "06/09/2023", "datePublished" : "06/09/2023", "headline" : "Four Sources to Consider When Restructuring Your Income Post-Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://39875594.fs1.hubspotusercontent-na1.net/hubfs/39875594/Imported_Blog_Media/qtq80-1fBtOD-300x200.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/four-sources-to-consider-when-restructuring-your-income-post-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "In part one of this post, we introduced Rachel Anderson, family attorney at Anderson Allen, LLC. Rachel works with divorcing couples in Colorado and has experience in all types of family law matters including high-conflict and complex cases, allocation of parental responsibilities, paternity, relocations, child support, spousal support, property division, modifications, and post-decree matters. In the second part of this interview, Rachel answers top questions about spousal and child support in Colorado. As you review these responses, note that the specifics of your divorce are unique. This post does not constitute legal advice. For specific guidance, talk to an attorney directly by scheduling a free consultation. How do I know if my case could be subject to spousal support? Spousal support, also called maintenance, can be awarded in a divorce case if a party cannot independently provide for their own reasonable monthly needs, either through property allocated to them in the divorce or through appropriate employment. To avoid the need for spousal support, the Courts can decide to allocate more marital property to one party to allow them to support themselves. If that type of property award is not possible or appropriate, the Court will consider a number of factors, including each party’s financial resources, their income, their employability, and the length of the marriage. A statutory guideline formula provides the court with a starting point for determining a monthly payment to the lower-earning spouse. Generally speaking, the formula results in an amount of support equal to 40% percent of the parties’ combined monthly adjusted gross income minus the lower-income party’s monthly adjusted gross income. If the calculation results in a negative number, the amount of support is zero. I am not currently working, what does inputting an income mean in the context of the spousal support calculation? How do I know if I will be imputed income; are there any exceptions? When calculating spousal support, Colorado law allows the Court to impute income for a party who is determined to be voluntarily under-employed, or unemployed. The Court can use a party’s potential “imputed” income in the support calculation equal to the amount they could reasonably earn if employed to their fullest capacity, considering their education, training, and employment history. However, the law says the Court should not impute income to a party if they are engaged in good faith efforts to obtain work experience, education, or training that is reasonably intended to result in higher income in the foreseeable future. Lastly, a party cannot be imputed income if they are physically or mentally incapacitated or caring for a child of the relationship under the age of thirty months. What are the major factors that affect the child support calculation that I should be aware of? In applying the statutory child support guidelines, a court will consider: the party’s gross monthly incomes (which includes wages as well as other sources) any spousal support awarded the number of overnights awarded to each party in the parenting time schedule the child’s portion of health insurance premiums paid by each party any extraordinary expenses related to the child (including childcare or recurring out-of-pocket medical expenses) Can child or spousal support be modified? Yes. Circumstances can and often do change. Child support can be modified when there is a substantial and continuing change in circumstances that would result in a variance of at least 10% in the amount of monthly child support, according to the child support guidelines. Maintenance can be modified when there is a substantial and continuing change of circumstances that makes the original award unfair or inadequate. Modifications can only be made for support payments due after the filing a motion, except for changes to child support due to a mutually agreed upon change of physical custody of the child. In the latter case, the modification can be retroactive to that change. Even if child or spousal support can be modified, how often are orders actually modified? In my experience, Courts are more inclined to modify child support than they are maintenance. Maintenance modifications are typically applied conservatively, especially if the Court considered a disproportionate award of marital property at the time of the divorce. Therefore, when negotiating for or making a request at trial for a particular maintenance award, one should never assume the amount can be changed at a later date. I have heard that my spouse will be required to pay for my legal bills since I do not have an income. Is this true? Colorado law considers the expenses of the divorce process itself, including attorney fees, and marital expenses to be shared by the parties. Attorney fees are often decided last, after all other financial determinations have been made. If the Court decides that sufficient marital property and spousal support were awarded to the lower-earning spouse, they may simply decide that each party is responsible for their own attorney fees. However, the Court will consider the amount and reasonableness of fees charged by each party’s attorney when deciding how to fairly allocate those between parties. We know that, while these might be top questions on your mind, there are likely others that you have specific to your circumstances. In fact, sometimes getting answers to the big questions results in more small questions related to your specific settlement strategy. Connect with Rachel Anderson, Family Law Attorney or Amy Mahlen, Certified Financial Planner, and request a free consultation to support your divorce process.", "author" : { "@type" : "Person", "name" : "Amy Mahlen", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/amy-mahlen" }, "dateModified" : "16/04/2023", "datePublished" : "16/04/2023", "headline" : "Part 2: Top Spousal and Child Support Questions: An Interview with Rachel Anderson, Family Law Attorney", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/qtq80-Gwj3aK.jpeg", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/part-2-top-spousal-and-child-support-questions-an-interview-with-rachel-anderson-family-law-attorney", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Transitioning financially through divorce has many moving parts. Stress testing your strategy regarding how income and expenses can change your circumstances in the future is important to consider. Understanding how spousal or child support can be modified will help you answer questions such as ‘should I go back to work?’, ‘how much should I spend on rent?’ or ‘how much should I keep in my emergency fund?’ Overall, it also assists you in creating a workable settlement that you feel secure about moving forward. This topic is subject to state statutes and legal counsel is always advised regarding your specific situation. The following are considered general guidelines. A.M. Financial does not provide legal or tax advice. Spousal Support Start by reviewing your divorce papers as they might provide insight regarding allowable modifications regarding your case. Some arrangements allow for adjustments due to income changes within a specific percentage by either party. For example, receiving a significant pay raise or transitioning from part-time to full-time work could trigger modifications to support. Other changes in employment, living arrangements (moving in with a boyfriend or roommate) or injuries leading to long-term disabilities can also be cause for support to be modified. Contractual spousal support agreements mean modifications cannot be made unless stated otherwise. Individuals who have concerns that an ex-spouse could potentially and purposefully be vindictive, e.g., risking their employment in attempts to avoid paying support, should speak with their attorney to see if a contractual support agreement or lump-sum payout would be a workable option for your case. Be aware that if spousal support decreases more than $15,000 per year within the first three years after a divorce, significant tax consequences could result unless the changes were due to death or remarriage. It is important to speak to an attorney or tax professional to review your case. Child Support Child support is determined by state guidelines which are based on overnight visits with each parent. If the number of overnight visits changes due to a move, change in school or other circumstance, parties can petition for a modification. Many of the same occurrences that can change spousal support also apply to child support – employment changes, disabilities, etc. Child expenses such as medical expenses, daycare, educational expenses or extra-curricular activities are addressed either in the child support worksheet or the parenting plan. When items listed on the child support worksheet change, such as daycare expenses or child health insurance expenses, modifications can be made. Spousal support is viewed as income to the recipient and affects the amount of child support. Therefore, if spousal support is modified then child support will most likely change as well. How to Modify Support Arrangements If changes have occurred that warrant a modification in either spousal or child support, paperwork should be submitted requesting an adjustment with an explanation for the change. Just like any other time in the divorce process, it is prudent to seek legal counsel to understand your rights and how to protect yourself. Depending on the situation, if a petition for modification is received in agreement with the other party the process can be straight forward and timely. In other cases, when parties are unable to come to an agreement, the issue will be decided in front of a judge. It is important to note that individuals remain responsible for court-ordered arrangements until a request for modification has been submitted and alternate arrangements have been approved.", "author" : { "@type" : "Person", "name" : "max.melomed@gmail.com", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/max-melomedgmail-com" }, "dateModified" : "14/01/2023", "datePublished" : "14/01/2023", "headline" : "Stress Testing a Budget in Divorce", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/e2f69251cb244a16a0c1f7d6f87aba1e.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/stress-testing-a-budget-in-divorce", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "The Tax Cut and Jobs Act (TCJA) that went into effect this year for divorcing couples has drastically changed the financial landscape for individuals from prior years. The most significant change is that spousal support (alimony) is no longer deductible if paid or taxable income if received. Many states, including Colorado, have updated spousal support guidelines to take into consideration these modifications. Overall, these changes have effectively reduced financial resources for both spouses because Uncle Sam is receiving a larger slice of the pie. Although this repeal has been a headline story in the media, what other financial issues have been affected and are there any new planning strategies to help navigate the new terrain? Payor’s Challenges: Most notably, the individual paying spousal support will have a significantly higher tax burden. Therefore, their ability to claim other tax deductions such as medical deductions (taxpayers can deduct medical expenses that exceed 10% of their AGI) or any tax incentives available that are linked to income have also been affected. Eligibility to participate in a Roth IRA may also be more difficult to qualify for since contributions are only available to taxpayers with an AGI of $122,000 or less in 2019. Higher income earners may also find themselves paying the 3.8% Medicare surtax that is levied upon single taxpayers with incomes above $200,000 whereas married couples filing jointly weren’t subject to this tax until their income was above $250,000. Recipient’s Challenges: According to the Pew Research Center, ‘Grey Divorces’ for those over the age of 50, have doubled over the past 25 years. This combined with the recent tax overhaul has made saving for retirement significantly more challenging during a period of time where most couples are trying to make the most of their last minute savings efforts. Most spousal support recipient’s over the age of 50 have spent the past 20+ years tending to family at home, relying on their spouse’s income to build their nest egg, and now depend solely on spousal support for the majority of their income. These spouses, with no earned income, are not eligible to contribute to an individual retirement account (previously spousal support was considered pass through ‘earned income’ and was eligible to contribute to individual retirement accounts). Therefore, the ability to save for retirement during the last leg of the race before retirement has been significantly hindered if additional employment is not obtained or considered during divorce proceedings. Recipient’s Opportunities: A stark difference between taxable and non-taxable spousal support has completely changed the financial landscape for many divorcees. Change can be challenging however, when we are able to re-frame change we can also find opportunity. This year while working with divorcees it has been my goal to uncover just that – what are the opportunities in this new environment? The following are some examples of what has surfaced for spousal support recipients: *Spouses with extremely low taxable income will be able to deduct a larger portion of their medical expenses that are over 10% of their AGI. *Individuals working part-time earning less then $15,570 this year while receiving support will qualify for the Earned Income Tax Credit that wouldn’t have been available in prior years. Creating Tax-Free Retirement Income: Retirement planning opportunities may exist especially for the Grey Divorcee’s who can take advantage of the vast difference in taxable income before and after retirement. The following graph shows the significant difference for a 55-year-old receiving $50,000/yr in tax-free spousal support plus earning $20,000/yr through employment versus at age 67 years when spousal support ends and nearly all income sources are completely taxable: Based on the above example, 72% of the income prior to retirement is tax-free with only $20,000 being taxable income whereas, nearly all the income after the age of 67 is taxable (Social Security is 85% taxable). The difference in tax liability would increase approximately 5.5 times due to this disparity assuming the individual is claiming the standard deduction. Extending Tax-Free Spousal Support into Retirement The situation above can provide an opportunity to utilize low income tax strategies for several years while spousal support is being paid. Annual Roth IRA Conversions can take advantage of these income differences effectively extending the life of retirement assets. The following example shows how this strategy works prior to age 67: Scenario 1: shows the growth of a $200,000 IRA account growing at 7% per year with no additional contributions from 55 to 67 years old. At the age of 67, $420,970 is available in a fully taxable IRA account. All withdrawals from a traditional IRA account will be 100% taxable income (shown as red in the above chart) which usually increases the amount of withdrawal a taxpayer needs in order to pay the necessary taxes associated unless other readily available assets are available outside the IRA. Scenario 2: is an example of utilizing an Annual Roth Conversion strategy to transfer retirement assets from a fully taxable IRA account to a tax-free Roth account, assuming the same 7% growth rate for both accounts. On an annual basis, $22,000 is transferred from the IRA to the Roth IRA and taxable at 12%. Over the course of a 12-year period the taxpayer pays $37,380 in taxes associated with the conversions. By the age of 67, the balance in the fully taxable traditional IRA is almost zero and the bulk of retirement savings, $417,852, are in the Roth IRA account where all future growth and distributions are tax-free (shown as green in the above chart). It should be noted that because distributions from the Roth account are tax-free, the necessary required withdrawals are smaller because no tax liability is created with the withdrawal. Therefore, the Roth IRA will retain its principal, continuing to grow during retirement at a much more robust level providing significant additional financial resources to retirees over their lifetime compared to the IRA account. Conclusion Just as the stock market landscape changes from year-to-year (or day-to-day recently!) the overall financial landscape for divorcing couples has dramatically changed, especially for those over the age of 50. As we navigate the new terrain, opportunities to build wealth in any circumstance are still available with proactive planning. Working with a Certified Divorce Financial Analyst (CDFA) and Certified Financial Planner™ while settling a divorce can strengthen post-divorce financial recovery. You wouldn’t retire without a financial plan… it might be messy! Don’t divorce without one either!", "author" : { "@type" : "Person", "name" : "max.melomed@gmail.com", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/max-melomedgmail-com" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Financial Opportunities Surface Within Challenging Spousal Support Changes", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/0cbd19_d42816d382044d798b0ea8fa3d0d7241~mv2.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/financial-opportunities-surface-within-challenging-spousal-support-changes", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ``` ```json { "@context" : "http://schema.org", "@type" : "BlogPosting", "articleBody" : "Currently, alimony is on the chopping block under the Tax Cuts and Jobs Act (TJCA), meaning there would be no deduction provided for the paying spouse and the receiving spouse would no longer have to claim payments as income for divorces finalized after 2017. Important topic to be discussing legal counsel, mediator and certainly your financial planner to ensure your long-term strategy. Amy can help review these changes with you to determine your best long-term financial solution if the bill passes as is! Contact us today or schedule a free initial consultation to review your situation.", "author" : { "@type" : "Person", "name" : "max.melomed@gmail.com", "sameAs" : "", "url" : "https://amf-divorce.com/our-blog/author/max-melomedgmail-com" }, "dateModified" : "01/06/2022", "datePublished" : "01/06/2022", "headline" : "Will Spousal Support (Alimony) Continue to Be Tax Deductible in 2018?", "image" : { "@type" : "ImageObject", "height" : 400, "url" : "https://cdn2.hubspot.net/hubfs/39875594/Imported_Blog_Media/e261dd_f92f6ff96f324246b327a9ddfd0829a7~mv2.webp", "width" : 750 }, "mainEntityOfPage" : "https://amf-divorce.com/our-blog/will-spousal-support-alimony-continue-to-be-tax-deductible-in-2018", "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "" }, "name" : "A.M. Financial", "url" : "amf-divorce.com" } } ```