Does Alimony Change If Income Changes?
In many marriages in the U.S, the difference between the earnings of spouses is significant. In such cases, in the event of a divorce, courts often award the spouse with higher income spousal support, which is also referred to as alimony.
But what happens when the income of spouses change? For example, one of the marriage partners may have gotten a substantial raise. The decision by courts on whether or not to allow modification of alimony after divorce may also be based on factors and in most cases a spousal support lawyer Ontario can help bring them to light. This may include financial emergencies if one of the spouses gets remarried and retirement.
The legal provisions for the changes vary from one state to another. Therefore, consider checking your state’s divorce laws and contact an alimony attorney Ontario on whether you’re eligible for modifications of the alimony you pay or receive. Here are some of the main reasons why courts may allow the changes:
If There’s Mutual Consent
You and your former spouse can agree with each other to modify the terms of your spouse support agreement. A court order isn’t necessary in this case. However, if one of the spouses fails to honor their obligations, there’ll be consequences. Although an agreement between you and your partner is a good move, an alimony attorney Ontario advises individuals to ensure a judge signs it.
Changes in the Cost of Living
The Cost of Living Adjustment Clause is common in spousal support agreements. In some jurisdictions, the clause is mandatory. The specific requirements also vary from one state to another. Lawyers for alimony in Ontario can shed some light on the issue.
One of the common features of the clause in different jurisdictions is that there must be a date the adjustment will become effective and the applicable COLA index. It’s also a requirement in most of them to consider the possibility of future increase and decrease in income of the paying party.
If you’re the paying party, you can contest the adjustment before the application of the Cost of Living Adjustment. The main aim of introducing the clause is to ensure increased spousal support if the cost of living increases.
Without the clause, the receiving party has to request an increase if their expenses go up. Even if spouses include the clause in their agreement, courts of law may not approve it if it doesn’t meet the legal requirements.
The Escalator Clause
According to lawyers for alimony in Ontario, some spouses agree with each other that there’ll be an increase or decrease of alimony, depending on several factors. For example, some of them may agree to exchange their financial records yearly. In the event of a significant increase, they can determine the rate for increasing alimony.
Additionally, if the paying party’s income decreases during the year, spouses may agree to lower the amounts payable accordingly. However, incidents of reduced income levels are rare, but some people agree to the terms.
Change of Circumstances
Alimony after divorce may also be subject to modification in the event of changes in circumstances. For example, the applicable state laws change from time to time. If that happens, you’ll receive or pay alimony based on the current law. The amounts payable may also change if your former spouse starts cohabitating with another person.
Finally, a spousal support lawyer Ontario can help you to learn more about what to know about spousal support and Alimony. Contact us today!
