CSG Law Alert: The Savings Component in an Alimony Award – Looking Over or Overlooking the Four-Leaf Clover?
For some couples, saving money can be of critical importance during their marriage. However, what these couples may not realize when they are divorcing is that a history of regular savings during the marriage can play a role in determining the standard of living during the marriage because the court may factor those savings into an alimony award. Below are some questions and answers to consider relative to savings and alimony.
- When will the court include a savings component in an alimony award? Generally, a court may include a savings component in an alimony award when the parties routinely saved during their marriage. A party seeking to include a savings component in an alimony award must provide adequate proof as to the approximate dollar amount that was historically saved and its determination of marital lifestyle.
- What is the purpose of a savings component in an alimony award? A savings component is designed to help the dependent spouse maintain the marital standard of living.
- Can a savings component be applied retroactively to alimony paid during the course of the litigation? A court may, in making its final alimony award, retroactively apply the savings component and calculate arrears appropriately.
For guidance and answers to your questions regarding this important subject, please contact the Family Law Group at CSG Law.