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Wisconsinís Alimony Laws
Alimony is the term used in many states for financial support paid to a ex-spouse after a divorce. In Wisconsin the term "alimony" has been replaced with the term Spousal Maintenance.The terms are synonymous.
Maintenance is most often used to provide temporary financial support from one spouse to another when that spouse was financially dependent on the other during the marriage. In most instances maintenance is designed to provide the necessary support for a spouse until he or she either remarries or becomes self-supporting. In some states, an award of alimony may be based on marital fault. However, Wisconsin is a "no fault" divorce state which means that perceived marital misconduct such as infidelity or abuse are not considered in determining support obligations. Spousal Maintenance is an obligation that is independent of child support and property settlement obligations.
Unlike Wisconsin's child support statutes, there are no percentage guidelines to determine when spousal maintenance is appropriate or at what level. In Wisconsin, trial courts have broad discretion in deciding whether to award maintenance and in determining its duration and amount. As a result, spousal maintenance often becomes one of the most contested issues in divorce proceedings.
Spousal Maintenance Factors
Currently, Spousal Maintenance awards are granted pursuant to Wisconsin Statutes Case 767.26. Under this law the courts are guided by ten factors that should be considered in determining a spousal maintenance award. The factors include:
No single factor is dispositive and the Courts must weigh all factors giving appropriate weight to each.
One important factor in determining whether spousal maintenance is paid and for how long is the length of the marriage. Shorter marriages often result in no award of spousal maintenance or lesser awards. Longer marriages may result in long term or even permanent awards. A second important factor in determining the level of spousal maintenance is the standard of living the parties enjoyed during the marriage. When faced with a long term marriage (fifteen years or more), often Wisconsin trial courts begin their evaluation of spousal maintenance with the proposition that a spouse that is dependent on the other for financial support is entitled to 50% of the earnings of both parties. This is considered to be a starting point for equalizing the standard of living for each party.
Awards, Denials and Modifications of Maintenance
If the parties are unable to resolve disputes related to spousal maintenance, a court may:
Awards of spousal maintenance may be "temporary" or "rehabilitative", designed to rehabilitate the spouse so that he/she may become self-supporting, or "permanent."
No matter whether spousal maintenance is awarded, denied or reserved after a trial, the issue may be always be readdressed and spousal maintenance modified upon a showing that there has been a substantial change in circumstance making the original award (or denial) unreasonable or unfair. Under most circumstances spousal maintenance automatically terminates when one spouse dies or the spouse receiving maintenance remarries.
From a practical standpoint, it is unlikely that a Court denying spousal maintenance would later change that determination absent compelling circumstances. A compelling circumstance may include a critical illness befalling the party seeking maintenance which renders that person incapable of working or providing for their own support. There would also have to be a showing that the person from whom maintenance is sought has the ability to contribute.
Temporary awards of spousal maintenance usually dictate factual presumptions on which the award is based. For example, maintenance may be awarded for a period of five (5) years at a certain level predicated on the recipient enrolling in and completed educational courses and finding employment in that period of time. Either party may bring the matter back before the Court if the recipient becomes self supporting at an earlier date or, through no fault of his/her own, fails to find employment within the designated period. Orders setting forth detailed educational and employment time lines on which the maintenance award is based tend to favor the person paying spousal maintenance since the recipient must demonstrate good cause why the time lines were not followed or achieved to extend the spousal maintenance beyond that period.
Waivers of Spousal Maintenance"
There are only one way to preclude the Court from having jurisdiction to award spousal maintenance. Statutes relating to spousal maintenance awards specifically allow the parties to enter into a private agreements that preclude or limit spousal maintenance awards. These agreements may take the form of properly executed prenuptial agreements or agreements reached as part of the divorce proceedings.
Unfortunately, such agreements are disfavored by Wisconsin Courts. Any court that is asked to enforce such an agreement must determine that the stipulation is fair and equitable and supported by adequate consideration after full disclosure of each party's financial circumstance.
Since the Court determines what is fair and equitable at the time of the divorce, it is particularly unlikely that prenuptial agreements executed many years in advance will carry much weight. What is fair and equitable at the time the marriage begins may not be fair and equitable when it ends.
Spousal Maintenance Buy-outs
In most cases, the interests of persons asked to pay spousal maintenance are better served by offering an immediate buy-out of spousal maintenance in return for a waiver that would preclude the court from modifying spousal maintenance in the future. This buy-out may occur as part of a property settlement that favors the party seeking maintenance.
To determine what amount to offer or accept as a buy-out, it is important to consider two factors:
Present value refers to the value of a dollar today as compared to the value at some point in the future. Remember, a dollar paid today is more valuable than a dollar received next year or even next week since the money properly invested would gain interest over that period. As a direct result, a buy-out of spousal maintenance will always be less than the total value of the spousal maintenance paid over time.
Imputation of income is a harsh result where the Court requires a party to pay spousal maintenance (or child support) based on earning capacity rather than true income. For example, if one party quits a job and reduces his/her income voluntarily or if a party fails to seek gainful employment though able-bodied, the Court may base that person's income on earning capacity. Oftentimes, the parson's prior work history plays a pivotal role in determining what they have the ability to earn.
Documents that may be presented to the Court regarding earning capacity include:
Documents that may be presented to the Court refuting a claim that income should be imputed may include:
To determine the skill level of a spouse seeking spousal maintenance, it may be necessary to have a vocational evaluation performed. If requested by a party, it is likely that a Court will require the party seeking spousal maintenance to cooperate with such an assessment.
A vocational evaluation is conducted by a Qualified Rehabilitative Consultant (QRC). During the evaluation stage, the QRC will administer a series of questionnaires designed to highlight the vocational strengths and weaknesses of the party being tested. With theses test results, the QRC examines the fields of employment in which the person examined is likely to have the most success. The evaluation also analyzes the past work and educational history of the individual as well as that person's employment goals.
After the evaluation has been performed, the QRC drafts a report that identifies the fields in which the tested person has demonstrated strengths. The report then analyzes the field to determine what additional education is necessary, if any; the likely period of time for completing that education; the costs associated with the education; and the likely wage that the tested person is likely to achieve after education and training.
The results of a vocational evaluation may be challenged at trial. However, these independent experts hold great sway with the Court in determining the amount and duration of spousal maintenance awards.
How to Present Your Maintenance Case
As previously stated, some relevant factors considered by the court in deciding whether to award spousal maintenance include the finances of the parties, the education levels of the parties, the work histories of the parties, the health of the parties and the standard of living the parties established during the marriage. In order to properly document these issues at trial you should provide the following:
Tax Consequences of Spousal Maintenance
In deciding whether to "buy-out" the other party's spousal maintenance, it is important to consider all of the potential tax consequences.
Under Wisconsin law, each parent has a duty to provide financial support for his or her minor children. Child support is based on the Wisconsin Child Support Formula. The Wisconsin divorce court considers the gross monthly income of both parents, special medical or educational needs of the child, the cost of health insurance, the cost of day care and the cost of providing support to others (such as parents or minor children who are not the product of the marriage).
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