Divorce and Temporary Maintenance Awards

On May 3, 2012, in Divorce, Family Law, by John A. Weber IV, ESQ.

Temporary Maintenance Awards During Divorce.

Divorce actions can take years to resolve. During the course of a long proceeding, a financially dependent spouse, suddenly cut off from the other spouse’s support, may have a hard time making ends meet, even though that spouse should (and will eventually) be awarded support payments from the wealthier spouse. New York law allows a remedy for such situations. Courts may order a wealthy spouse to make payments to a financially dependent spouse until the divorce action is resolved and more permanent payments are determined. Such a payment is called “temporary maintenance,” and is calculated according to a formula set out in New York’s Domestic Relations Law.

Generally, the formula is as follows: 20% of the dependent spouse’s yearly income is subtracted from 30% of the wealthier spouse’s yearly income (up to a statutorily determined cap of $500,000). Then, the dependent spouse’s yearly income is subtracted from 40% of both spouse’s combined yearly income (again, a $500,000 cap is applied to the wealthier spouse’s income). The temporary maintenance award will be the lower of these two numbers.

For example, assume that the wealthier spouse’s income is $100 per year, and the dependent spouse’s income is $50 per year. 20% of the less wealthy spouse’s income ($10) is subtracted from 30% of the wealthier spouse’s income ($30). The result is $20. Then, the less wealthy spouse’s income ($50) is subtracted from 40% of the spouses’ combined income. The spouses’ combined income is $150. 40% of $150 = $60. Subtracting $50 (the less wealthy spouse’s income) from $60 (40% of the spouses’ combined income) leaves $10. The temporary maintenance award will be the lower of these two numbers – $10. This amount is the temporary maintenance payment the wealthier spouse would be ordered to pay the dependent spouse in this situation, until the divorce action is resolved. The court may order different amounts in certain high income cases, or take into account other factors as is it sees fit.

If you are considering initiating a divorce action or are already involved in a divorce action, and would like to speak with an attorney, The Law Firm of Vaughn & Weber, PLLC is here to assist you.   Call (516) 858-2620 to speak with a Family Law Attorney today!

*Contributions to the research and preparation of this blog were made by Jason Mays, J.D. (awaiting admission in NYS).

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News: New Temporary Maintenance Guidelines

On August 17, 2010, in Divorce, Family Law, Message/News Board, by Robbie L. Vaughn, Esq.

New Temporary Maintenance Guidelines

Along with the no-fault divorce bill, Governor Paterson also signed bill A.10984/S.8390, which revises the process for setting awards of temporary maintenance while a divorce is pending. The following is excerpt from the bill:

“The duration of the temporary award under this measure would be determined by considering the length of the marriage.

The temporary maintenance guidelines would only result in an award when there is an income gap between the two parties such that the less-monied spouse’s income is less than two thirds of the more monied spouse’s income. For instance, if the payor’s annual income is $90,000 a year, the guidelines will only result in an award if the payee’s annual income is less than $60,000. The numerical guideline is only applied to the payor’s income up to $500,000 of
her/his income, with a set of factors to be applied by the court to determine any additional amount of temporary maintenance on the payor’s income above this $500,000 cap. The guidelines also include protections for individuals whose annual income is less than the self-support reserve (135% of the Federal Poverty Guidelines –
currently $14,620/year).

GUIDELINE AMOUNT:
To determine the guideline amount, the court must
compare two calculations of the spouses’ annual incomes. For both of
these calculations, any income of the payor’s that exceeds $500,000
is not included.
* 30% of the payor’s income minus 20% of the payee’s income, OR
* 40% of the combined income of the two spouses. The payee’s income is
then subtracted from this figure.

The court must select the lesser of these two figures as the guideline amount. If the payor has an annual income exceeding $500,000, the judge may adjust the amount.

This proposal would provide consistency and predictability for temporary maintenance awards similar to the child support guidelines in the Child Support Standards Act. It would also help bring parties to the table and facilitate settlement of cases.

This measure does hot make any statutory change to the current law on determining final or post divorce maintenance awards; except for revising the statutory factors to better reflect divorcing couple’s life circumstances. The amount and duration of the final or post-divorce maintenance awards would still be determined based on a
list of statutory factors.”

Click here to read the maintenance bill

If you have any further questions about this new development in New York Law, please feel free to contact us today at (516) 858-2620.

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