Showing posts with label Alimony. Show all posts
Showing posts with label Alimony. Show all posts

Friday, February 27, 2009

Alimony-- Craigslist to the Rescue

Craigslist has become known as a great Internet resource for buying and selling various goods and services. It is also a good place to look for a job or an employee. Apparently, a creative man has tried to find a way to save himself the money he spends each month on his ex-wife's alimony. Thanks to Robert M. Kisselburgh of the Mississippi Family Law blog for the following post:

"Man offers to pay for someone to marry ex-wife

"Imagine sitting at your computer and you are browsing the classified ads on Craigslist 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 Mississippi, 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."

In Texas, there is a common misperception that there is no alimony. Actually, we can have a limited amount of alimony that can be court ordered, or the parties to a divorce can agreed to contractual alimony that is not as limited in either amount or duration. It is not unusual for a spouse to later regret an agreement to pay alimony that seemed like a good idea at the time.

A scheme like the one from the Mississippi blog is obviously doomed to failure, but so is almost any other plan to end alimony early. Alimony may have a lot of tax and income benefits for both parties and that's why we often use alimony in Collaborative cases and in other cases with substantial estates. What you should keep in mind is that an agreement for alimony should not be entered into lightly. The best course of action is for you and your attorney to work with a financial advisor to evaluate the tax consequences and to look for the best combination of settlement terms.

Monday, April 14, 2008

Alimony from Wives: It's No April Fool Joke

In a recent post, Dan Nunley, of the excellent Oklahoma Family Law Blog, discussed a recent trend that appears to be slowly building. He cited and reprinted an April 1, 2008, Wall Street Journal article about men receiving alimony from their ex-wives. It appears that in about one in three marriages, the wife earns more than the husband does. If those couples divorce, the wife has a possibility of being ordered to help support her husband after the divorce and that apparently does not sit well with some of the wives who are in that situation. Interestingly, the comments and complaints of some wives paying alimony sound just like comments and complaints some men make when they pay alimony.

As you may know, after a long history of no court-ordered alimony, Texas does permit alimony to be ordered. It has long been possible for the parties to agree upon alimony as part of an overall divorce settlement. There are a number of reasons why parties may reach an agreement for the payment of alimony and it is becoming a more prevalent tool to help reach an out-of-court settlement in marriages which have either a high wage earner or significant assets or both.

Where the parties cannot agree on alimony, a party (wife or husband) can ask a judge to order alimony, but the law is very restrictive in qualifying someone to receive alimony and usually permits it only for a short period of time. There are few situations in Texas where significant court-ordered (and not agreed to by one of the parties) alimony can be ordered, so the situations described in the Wall Street Journal article don't occur in Texas to any degree. Here, court-ordered alimony requires more than just a difference in income or fault in the break-up. Basically, if the party is able to support herself or himself or has assets that can provide the means to support the person, a court is generally not going to order alimony. Also, if alimony is court-imposed (not by agreement),
it will generally be no more than $2,500.00 per month and last for up to three years.

Nevertheless, it should not be surprising in the next few years to see more husbands seek alimony from their spouse for the same reasons wives have traditionally given when they have sought alimony. And we can probably expect the same responses from wives that we have gotten from husbands over the years as they protest the awards. In the end, the same reasons that support alimony from husband to wife can support alimony from wife to husband. A more significant trend will probably be the use of alimony as a tool to help settle substantial property or income divorces in a way that benefits both parties.