The Strategic Divorce Process – Step Four – Understanding Maintenance

The Strategic Divorce Process was created to bring clarity and structure to what often feels like an overwhelming experience. Instead of trying to solve everything at once, we move through divorce in five intentional steps. In the First and Second Steps, we focus on decision making and parenting time so children’s schedules and parental responsibilities are clearly defined and entered with the Court in a Parenting Order. Next, in Step Three we address child support, using accurate income information and statutory guidelines. Which brings us to Step Four, the calculation of maintenance. Next month in the final step, Step Five we will divide assets and debts and finalize the Divorce Decree.

Whether you know it as alimony, spousal support, or maintenance, it is Step Four of the Strategic Divorce Process. It is an important topic because it comes into play in the majority of divorces.

There have long been misconceptions about what maintenance is, how it is calculated, and who is entitled to receive it. This step gives us the opportunity to clear those misconceptions up.

Simply put, maintenance is supplemental income paid from one spouse to the other after divorce. Its purpose is to allow both spouses to live as close as possible to the lifestyle they were accustomed to during the marriage. Of course, that optimistic view is not entirely realistic. When two people divorce, their combined income usually stays the same, but their expenses nearly double. Income is now divided between two households, with separate mortgages or rent, utilities, and everyday costs.

In reality, the courts use maintenance to ensure that both parties have enough money to comfortably survive. The goal is to prevent one party from thriving while the other struggles or is forced to make extreme lifestyle changes. Maintenance is about fairness, not punishment.

When determining who will pay maintenance, the primary factor is income. The lower wage earner will receive support, and the higher wage earner will pay it. Courts do not limit their review to employment income alone. Any reliable source of money is identified and used in the calculation. This can include family gifts, investment income, employment perks such as car allowances or cell phone contributions, and income from hobbies or side businesses. Essentially, anything that can be deposited in a bank account, may be included.

One of the biggest misconceptions about maintenance is that it is entirely at the court’s discretion. That belief makes sense because until 2016, it was true. Today, courts must follow a statutory formula. Based on that statutory formula, the calculation is thirty three percent of the higher wage earner’s net income minus twenty five percent of the lower wage earner’s net income, which equals the annual maintenance paid.

There are exceptions to this equation. First, the amount the lower wage earner receives cannot exceed more than forty percent of the couple’s combined net income. If the standard calculation exceeds that amount, the forty percent cap applies. Second, if the couple’s combined gross income exceeds five hundred thousand dollars annually, any maintenance awarded on income above that amount may be calculated differently at the judge’s discretion.

For spouses who do not work outside the home, such as stay-at-home parents, an imputed income is often used to represent earning potential rather than actual income. This adjustment reduces the maintenance obligation for the higher earner and reflects the reality that many people are capable of working, even if they were not employed during the marriage.

Temporary maintenance may begin during the divorce, but standard maintenance payments usually begin monthly once the divorce is finalized. In most cases, maintenance does not last forever. There are several ways the obligation can end.

Just as the amount of maintenance is determined by a formula, the length of maintenance is also guided by statute. In Illinois, maintenance lasts a certain percentage of the length of the marriage, and that percentage increases as the length of the marriage increases. For example, if a couple was married for less than five years, maintenance lasts twenty percent of the length of the marriage. If the couple was married between ten and eleven years, maintenance lasts forty four percent. For marriages between fifteen and sixteen years, maintenance lasts sixty four percent. If the couple was married for more than twenty years, the court may order maintenance for a period equal to the length of the marriage or indefinitely.

Although both the amount and duration of maintenance are driven by formulas, a different structure can be negotiated if both parties are open to it. One spouse may agree to a higher maintenance payment for a shorter period, or another may waive maintenance entirely in exchange for a larger share of the marital estate.

Generally speaking, maintenance is straightforward as long as income can be accurately calculated. Like child support, it is driven by math. Unless one of the parties wants to negotiate, the statutory formula guides the discussion and helps avoid unnecessary conflict. When negotiations do happen, they are usually tied to how the marital estate is divided. A lower maintenance obligation or shorter duration is often achieved through the division of assets.

In Step Five of The Strategic Divorce Process, we move to dividing assets and debts. This is often the most complex part of divorce, and it is where having a strategic plan truly matters.

If you are facing divorce and have questions about maintenance or any other step in the process, start by getting informed. Understanding how the system works puts you in a position of strength. The more prepared you are, the better decisions you can make for your future. Please do not hesitate to reach out to Strategic Divorce.  847-234-4445