Attorney O's Midnight Musings: Connecticut Law » Alimony

Voluntary Retirement and Alimony Obligations

Irene C. Olszewski, Esq. — Thu, 09 Jun 2011 16:41:11 +0000

In the recent Connecticut Superior Court case known as Applegate v. Applegate, the Court held that the voluntary retirement of the husband at age 75 did not constitute a substantial change of circumstances to justify the modification of alimony. In that case, alimony was ordered to be paid by the husband to the wife for a fixed period of time. The husband voluntarily retired from his job and was unable to offer evidence that his retirement was due to issues beyond his control (such as illness or company downsizing).

The Court reasoned that the husband knew at the time of the divorce that he was obligated to pay alimony to the wife for a fixed period of time:

“Plaintiff also claims that he should not have to work any longer, as he is now reached the age of 75 and should be able to retire at this age. He testified before this court that he anticipated retiring at some point in time after his divorce proceeding. Nonetheless, at that time he voluntarily agreed to pay alimony to defendant for a period of five years. His belief that he can now avoid those obligations by simply retiring from his job is not based upon law or reason. “

The Court denied his motion to modify the alimony obligation due to voluntary retirement.

Read the entire decision here.

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Alimony 101

Irene C. Olszewski, Esq. — Mon, 16 May 2011 18:18:05 +0000

When two people enter into marriage, each has the duty to support the other. When couples divorce, that duty to support may continue. That’s the concept of alimony, in a nutshell.

In many cases, the incomes of the two divorcing parties are disparate. For example, if one party earns $150,000 per year and the other earns $30,000 per year, the difference in their incomes is $120,000 per year. Combined, that married couple lives on $180,000 per year. When divorcing, there has to be a way to equalize the money each person will have available to live on. The party earning $150,000 will likely be obligated to pay alimony to the party earning only $30,000. There are a variety of factors that the courts must consider.

Connecticut General Statutes Sec. 46b-82 states that:

“In determining whether alimony shall be awarded, and the duration and amount of the award, the court shall hear the witnesses, if any, of each party, except as provided in subsection (a) of section 46b-51, shall consider the length of the marriage, the causes for the annulment, dissolution of the marriage or legal separation, the age, health, station, occupation, amount and sources of income, vocational skills, employability, estate and needs of each of the parties and the award, if any, which the court may make pursuant to section 46b-81, and, in the case of a parent to whom the custody of minor children has been awarded, the desirability of such parent’s securing employment.”

In some cases, one party to the marriage has given up a career or educational opportunity in order to stay at home and raise the couple’s children. On divorce, that party has very few employment options and may require training or education before being able to command a salary that is higher than minimum wage. It is only fair, then, that the party with the income pay alimony to the party without income in order for that disadvantaged party to be able to obtain the training or education necessary to become employable. A court will certainly take such circumstances into account when determining an alimony award.

In order to provide security to the person receiving alimony, our statutes provide that:

“The court may order that a party obtain life insurance as such security unless such party proves, by a preponderance of the evidence, that such insurance is not available to such party, such party is unable to pay the cost of such insurance or such party is uninsurable.”

This is only meant to be a brief overview of the alimony process in Connecticut. If you are in the process of divorcing, your attorney will explain your personal alimony obligation to you in detail.

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The Tax Consequences of Alimony

Irene C. Olszewski, Esq. — Thu, 31 Mar 2011 03:02:44 +0000

With April 15th looming in the immediate future, I thought I’d spend a moment discussing the tax consequences of alimony. I will preface this by saying that I am NOT a tax attorney nor an accountant, so be sure to discuss your specific tax concerns with a professional licensed to advise you on the fine points of filing tax returns. If you’re looking to modify a court order for the payment or receipt of alimony, that’s where I can help you.

That said …

If you PAY alimony to your ex-spouse, you are entitled to a deduction on your tax return. For those folks who are bitter about having to mail those weekly alimony checks, at least there is a tax benefit. That’s something. In case you were wondering, the payment of child support is NOT deductible. Sorry.

If you RECEIVE alimony from your ex-spouse, it is counted as part of your gross income and must be reported on your tax return. In other words, receipt of alimony is not tax-free income. If you are receiving alimony for the first time, you are wise to consult with your accountant to determine how (or if) this will effect your tax obligation (or refund). It’s best to be pro-active rather than reactive. Also, as I mentioned above, child support is not deductible by the person who pays it, nor is it considered income for the person who receives it. That’s a relief if you are the recipient of child support.

On that note, I wish you all well as you forge ahead with your tax returns.

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Judge Says No To Seven-Year Alimony Rebate

Irene C. Olszewski, Esq. — Sat, 07 Aug 2010 18:21:30 +0000

Here’s an interesting post from the Connecticut Law Tribune:

Judge Says No To Seven-Year Alimony Rebate

The Judge’s decision brings up a variety of interesting questions for divorced (or divorcing) couples with regard to the provisions of their separation agreements. One thing is for sure, motions should be filed in a timely manner!

Alimony: Using Craigslist to Get Out of Paying?

Irene C. Olszewski, Esq. — Wed, 11 Nov 2009 02:33:28 +0000

Editor’s Note: I happened upon this post a few nights ago while searching for articles on the topic of alimony. It was posted in February 2009 on the Mississippi Family Law Blog. It’s an interesting post with some good advice on what NOT to do if you are ordered to pay alimony to an ex-spouse.

Man Offers to Pay for Someone to Marry Ex-Wife

Imagine sitting at your computer and you are browsing the classified ads on Craiglist and suddenly you come across the following ad:

Nice well taken care of ex-wife. Mid 40’s. Pretty and loyal. Never smoked and very little drinking. Will make someone a good companion (I know)…. Will pay 10K to the man or woman who marries her in a way that stops me from having to pay her alimony.

There’s the hitch. The man, trying to end his alimony payments to his ex-wife, is offering to pay a potential suitor to marry his ex-wife. Not being totally callous, the guy actually had some “terms and conditions” for this transaction.

• 1. This transaction offer only valid if she is not aware of it.

• 2. Must treat her good, no abuse tolerated by me.

• 3. This offer is null and void if it is determined to be illegal in any way — I am not a lawyer.

• 4. The end result must be that I am no longer liable to her for alimony and you make best effort to be good to her.

• 5. This ad is not in any way intended to demean my ex-wife. She is a nice person and is a fine catch for anyone.

OOPS. I think the cat’s out of the bag on condition #1. With news of the post hitting newspapers, she or some friends might find out. He might also have a problem with condition #3. At least he did not want to “demean” his ex-wife in any way–what a guy.

In Connecticut, if you are paying alimony to your ex, don’t use this tactic to end the alimony. Not only will it fall flat in front of the judge, but you can be assured your ex will not find the humor in being marketed on Craigslist.

[Special thanks to the source: Mississippi Family Law Blog]

Does Cohabitation of Ex-SPouse Terminate Alimony?

Irene C. Olszewski, Esq. — Thu, 05 Nov 2009 05:06:29 +0000

In a divorce, one party may be obligated to pay alimony to the other. Divorce agreements may state that alimony terminates on the death of either party or the remarriage of the party receiving the alimony.

If the party receiving alimony chooses to cohabitate with another person without entering into marriage, does the alimony obligation automatically terminate? No.

However, the legislature passed Connecticut General Statute 46b-86b which states that, “[i]n an action for divorce, dissolution of marriage, legal separation or annulment brought by a husband or wife, in which a final judgment has been entered providing for the payment of periodic alimony by one party to the other, the Superior Court may, in its discretion and upon notice and hearing, modify such judgment and suspend, reduce or terminate the payment of periodic alimony upon a showing that the party receiving the periodic alimony is living with another person under circumstances which the court finds should result in the modification, suspension, reduction or termination of alimony because the living arrangements cause such a change of circumstances as to alter the financial needs of that party.”

In other words, the party paying alimony may file a motion to modify the amount of alimony paid — and a judge has the discretion to suspend, reduce or terminate the payment of that alimony.