To receive alimony, which is called maintenance in Colorado, a spouse must request a maintenance award from the court. Colorado’s family courts have wide latitude when determining whether to award a spouse alimony, at what amount, and for how long. This is especially true in high-net-worth divorces.
If you are facing a Colorado divorce and are concerned about spousal maintenance, it is always best to seek the advice of an experienced high-net-worth divorce attorney. The following article provides general information for spouses concerning spousal support awards in high-net-worth divorces but is no substitute for professional legal counsel.
Colorado’s Statutory Guidelines Regarding Maintenance
Colorado has advisory guidelines in place to help courts to make maintenance decisions. However, the statutory guidelines for calculating alimony do not apply to couples whose combined gross income exceeds $240,000.
Therefore, the court must consider other factors when ruling on spousal maintenance in high-net-worth divorces. These include but are not limited to:
- Each party’s gross income;
- The marital property allocated to each party;
- Each party’s financial resources;
- The lifestyle the parties enjoyed during the marriage;
- The employability of each party;
- Whether one party has historically earned a higher or lower income;
- The age and health of the parties;
- The duration of the marriage;
- Any temporary spousal maintenance paid to the recipient spouse;
- Each party’s contributions to the marriage including child-rearing and homemaking; and
- Any other factors the court deems relevant.
Before the court addresses permanent spousal maintenance it will make its decisions as to property division. This is vital as the division of assets and debts could result in allocations that impact a party’s ability to pay maintenance if he or she received responsibility for substantial marital debt. The property division could also affect a party’s need for support, if he or she received income producing assets such as rental properties or an investment portfolio.
Maintenance and Taxes
Alimony or maintenance payments made according to a divorce or separation agreement executed after 2018 are not tax deductible by the person making the payments and represent tax free money to the person receiving the payment. Thus, for the person making the payment, the actual cost of any maintenance payment is significantly higher than the dollar amount being paid.
Contact an Experienced Denver High-Net-Worth Divorce Attorney Today
It is prudent to speak with an experienced Denver high-net-worth divorce attorney prior to making any divorce decisions. At Hogan Omidi, PC, we are confident our divorce attorneys can answer your most complex family law questions and work with you to protect your hard-earned assets.
Whether you choose to negotiate or mediate a divorce settlement or your case goes to trial, Hogan Omidi, PC, is ready to fight for your best interests and outcomes. Reach out to Denver divorce attorneys at our law office today to schedule a confidential consultation.
You can put your trust in Hogan Omidi, PC. We are the firm that wrote the book on Colorado family law.