Applied Math - Finances - Spousal Support

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Introduction

Spousal support, sometimes known as alimony, is a payment made from one spouse to another after a divorce has been finalized. States have different eligibility criteria for when a spouse is eligible for alimony. States also calculate alimony differently. The length of spousal support also varies from state to state.

Example:

1.

Suppose two people are getting divorced. The judge has determined that alimony is owed to spouse A. The formula for the calculation of spousal support is 40% of the difference between the parties’ net incomes without dependent children per year. The couple does not have children.

Spouse A makes $42,000 a year. Spouse B makes $68,000 a year. How much spousal support must spouse B pay to spouse A, according to the rules above?

We need to calculate 40% of the difference between their two salaries. Subtract their two salaries.

\[\$68,000 - \$42,000 = \$26,000\]

Spouse A gets 40% of the difference in alimony payments. To calculate 40% of a number, multiply the number by \(0.40\), the decimal form of the percentage.

\[0.40 \cdot \$26,000 = \$10,400\]

Spouse A is entitled to \(\$10,400\) per year, for whatever duration is determined by the court.



2.

A particular state has a law that the length of alimony should be 2 years for every 5 years of the marriage. The above couple was married for 16 years. How long is spouse A entitled to \(\$10,400\) per year in alimony?

If the court states that alimony should be paid for 2 years for every 5 years of the marriage, that means that alimony should last \(\frac{2}{5} = 0.40\), or 40% of the length of the marriage.

The couple was married for 16 years. 40% of 16 is \(0.40 \cdot 16 = 6.4\) years. To convert the \(0.4\) years to a number that’s easier to interpret, we can multiply \(0.4\) to the number of months in a year. \(0.4 \cdot 12 = 4.8\) months.

Practice Problems

1. Suppose two people are getting divorced. The judge has determined that alimony is owed to spouse A. The formula for the calculation of spousal support is 35% of the difference between the parties’ net incomes without dependent children per year. The couple does not have children.

Suppose two people are getting divorced. The judge has determined that alimony is owed to spouse A. The formula for the calculation of spousal support is 40% of the difference between the parties’ net incomes without dependent children per year. The couple does not have children.



2. A particular state has a law that the length of alimony should be 3 years for every 5 years of the marriage. The above couple was married for 22 years. How long is spouse A entitled to alimony?

Theory Questions

1. What percentage alimony do you think would be fair when a divorce occurs? Why?

2. How long do you feel that alimony should continue after a divorce? Why?