Temporary vs. Permanent
• Temporary Support – Court uses a guideline amount: 40% of high earner’s net income minus 50% of lower earner’s income. The intention is to maintain as much of a marital standard of living as possible after separation as there was before separation, given the available funds.
• Permanent Support – Court cannot use computerized guidelines. Instead they must use statutory factors set forth in Family Code §4320 to determine an appropriate number and duration. Permanent Support Factors include:
– Age of parties
– Health
– Earning capacity
– Education
– Standard of living during marriage
– Needs of the parties
– Balance of hardships
– Tax consequences
– Whether there has been domestic violence
– Any other factors the court feels are appropriate
Long Term vs. Short Term
• Duration of Marriage is a factor in determining how long spousal support will be paid
• Short Term: In a marriages of less than 10‐years the statutory presumption is that spousal support should not go more than ½ the length of the marriage. The presumption can be rebutted by presenting facts indicating it should be either extended longer or cut off sooner.
• Long Term: In marriages greater than 10‐years the court cannot terminate support, but will retain jurisdiction over the issue. Support in a long-term marriage can only be terminated by agreement of the parties.
Tax Consequences of Support
• Spousal Support
– Deductible by payor
– Taxable to recipient
– Parties can agree to have it not be taxable/deductible
• Family Support
– Hybrid of Spousal & Child Support
– Designed to make child support deductible
– Takes advantage in differences in tax rates of payor and recipient
– Deductible by payor
– Taxable to recipient
– Typically more than SS & CS combined
– Recapture risks