Alimony. How Much is Enough?

ALIMONY/MAINTENANCE

Andrew Hatherley, CDFA®

July 10, 2017

Spousal Maintenance or Alimony is a common feature of divorce and many couples understand that one of the parties will likely need to pay it.

But how much alimony is needed? And how long should it be paid? Most attorneys will go by your budget numbers, which are often inaccurate. Attorneys are also paid to do their best for the client they represent. So, if you’re the payor, they will argue for the lowest number possible and if you’re the recipient, they’ll argue for the highest number possible. That process doesn’t sound like a recipe for win-win situation.

The goal is for both parties to move into the next phase of their lives with confidence that their finance are in good order.

Whether you use attorneys or not, I am a huge advocate of negotiated settlements. The question is: How do you find the right number? As a Certified Divorce Financial Analyst, I project 20 years into the future for both parties. All expenses, income, assets and liabilities are included. Essentially, this is a full financial plan for each person reflecting whatever settlement agreement they are considering. Once you have that sort of data in front of you, it becomes much easier to find room for agreement. The goal is for both parties to move into the next phase of their lives with confidence that their finance are in good order.

“Don’t get frustrated trying to convince the other side you’re right without the financial numbers to back you up!”

A couple is far more likely to reach an agreement, with one person paying a certain level of maintenance, when we can show that the payor’s net worth and cash flow are still positive and increasing. Don’t get frustrated trying to convince the other side you’re right without the financial numbers to back you up! Call us at 702-835-6960. Let us help you.

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Certified Divorce Financial Analyst (CDFA®), Andrew Hatherley can help you to reach a workable resolution to your divorce so that you can get on with your new life and get started on your dreams.

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Andrew Hatherley is NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL ADVICE. All information he provides is financial in nature and should not be construed or relied upon as legal or tax advice. Individuals seeking legal or tax advice should solicit the counsel of competent legal or tax professionals knowledgeable about the divorce laws in their own geographical areas. Divorce planning is a fee-only process that does not involve investment advice or securities or insurance transactions.