Understanding the Arizona Spousal Maintenance Guidelines: A Simple Explanation
The Arizona Spousal Maintenance Guidelines are a set of rules established by the Supreme Court to determine the amount and duration of spousal maintenance (formerly known as alimony) awards in the state. While we explain the guidelines below, you can also download all the details by pdf here.
Executive Summary:
The spousal maintenance statute in Arizona was amended, and as a result, the Supreme Court developed the new guidelines. The main change is that spousal maintenance awards should only be granted for a period of time and in an amount necessary for the receiving spouse to become self-sufficient. The guidelines provide a preliminary target range for the court to determine the appropriate award, but deviations can be made based on certain factors outlined in Section IV.
Purposes:
The purposes of these guidelines are threefold. Firstly, they aim to help the requesting spouse become self-sufficient. Secondly, they promote consistency in awards for individuals in similar circumstances. Lastly, the guidelines serve as a tool to establish spousal maintenance awards and encourage settlements.
Application:
These guidelines apply to all proceedings related to spousal maintenance under Title 25 of the Arizona Revised Statutes after July 1, 2023. It’s important to note that eligibility for spousal maintenance is different from entitlement. While eligibility means meeting certain factors outlined in the statute, entitlement is determined by the court’s discretion after considering the guidelines.
Calculation Process:
To calculate the spousal maintenance award, the court typically uses a computer-generated calculator found on the Supreme Court’s website. The calculator requires relevant information to be inputted into the worksheet. The calculation process involves several steps:
Determine Family Size: Include the parties and any children for whom there is a legal obligation to support.
Determine Parties’ Annual Income: Calculate each spouse’s annual income and annual attributed income. Combine both incomes to determine the combined annual income.
Determine Average Monthly Mortgage Principal: Add the monthly amount of principal paid for the marital residence, excluding mortgage interest, taxes, and insurance. Calculate the average monthly amount based on the principal paid in the 12 months before the filing of the action.
Determine Expenditures: The calculator generates a range that includes expenditures for one adult and one-half of the family’s indivisible expenditures. Combine these expenditures with the average monthly mortgage principal to calculate the combined expenditure figure. The receiving spouse’s share of expenditures is calculated proportionately to their share of the combined annual income.
Calculate the Preliminary Target Range: The target range is the amount remaining after subtracting the receiving spouse’s share of expenditures from the combined expenditures. The court can make an award within this target range, considering statutory factors and case-specific facts. Deviations from the target range can be made based on the guidelines in Section IV.
Try the Arizona Spousal Support Calculator Here
Effective Date:
The guidelines apply to all original spousal maintenance orders entered on or after July 1, 2023, with a few exceptions. Parties can agree that the guidelines won’t apply, or if the dissolution petition was filed before September 24, 2022, the court may consult the guidelines for modification petitions. For modification petitions filed after September 24, 2022, a substantial and continuing change of circumstances cannot be established solely based on applying the guidelines to an existing order.
These guidelines aim to provide a fair and consistent approach to spousal maintenance awards in Arizona. They help courts determine appropriate support amounts and durations, considering the goal of promoting self-sufficiency for the receiving spouse.
Understanding Income Determination in the Arizona Spousal Maintenance Guidelines
When it comes to calculating spousal maintenance (alimony) in Arizona, determining the spouses’ incomes plays a crucial role. This section of the guidelines explains how income is assessed and what factors are considered. Here’s a simplified breakdown:
What is included in Spousal Maintenance Income?
Spousal Maintenance Income is different from Gross Income or Adjusted Gross Income for tax purposes.
It includes income from various sources, such as salaries, wages, commissions, bonuses, dividends, pensions, interest, trust income, and more.
Seasonal or fluctuating income is annualized to determine the average monthly income.
Income from self-employment or business activities is calculated by deducting ordinary and necessary expenses required to produce the income.
Significant reimbursements or non-cash employment benefits that reduce personal living expenses are included as income.
What is not included in Spousal Maintenance Income?
- Sums received as child support from the other parent in the same case.
- Federal disability benefits under specific statutes.
- Reasonable spousal maintenance paid on existing court orders in other cases.
- Marital property distribution is not considered unless it generates income.
- When is overtime included in Spousal Maintenance Income?
- Overtime or extraordinary work income regularly earned during the marriage is included to reflect the parties’ standard of living.
When is Spousal Maintenance Income attributed even if not actually earned?
- Attributed Spousal Maintenance Income is assigned based on a court’s finding, even if not actually earned or received. Factors considered include assets, employment history, job skills, education, age, health, and the job market.
- If unemployment or underemployment is voluntary, reasons and impacts are assessed.
- Retirement upon reaching full retirement age can be considered, but it’s rebuttable.
- If income attribution is applied, the amount must be noted in the worksheet.
- Income from dissipated income-producing property may also be attributed.
When is income not attributed in calculating Spousal Maintenance Income?
No income is attributed to an incarcerated person, but the court may establish or modify spousal maintenance based on their ability to pay. Income may not be attributed in cases of physical or mental disability, reasonable career training, caregiving for a child with special needs, or excessive childcare costs.
Understanding Property and Assets in Determining Spousal Maintenance Income
When calculating spousal maintenance (alimony) in Arizona, property and assets play a significant role in assessing a spouse’s income and financial resources. Here’s a simplified explanation of this section:
What are property and assets?
- Property refers to all assets that can provide for the reasonable needs of the spouse seeking maintenance.
- All property and assets, including sole and separate property, are considered for Spousal Maintenance Income.
The court presumes that the rate of return for an asset is the rate provided by the law for money judgments, with the first $100,000 exempt from this calculation. Examples of assets include passive assets (stocks, bonds, real estate), active assets (businesses), retirement assets, trusts, annuities, and employment benefits.
What is not included as property or an asset?
The court does not consider how marital property is divided between the spouses, except if the property generates income for a spouse.
What is Double Counting of Property and Assets?
Double counting should be avoided, such as when the value of a business is calculated using the income approach, and the same earnings are used to calculate spousal maintenance. The reasonable compensation of an employee spouse can be considered separately when calculating spousal maintenance.
How do excessive or abnormal expenditures or dissipation of property affect what is included?
Excessive or abnormal expenditures, destruction, concealment, or fraudulent disposition of property held in common are considered by the court.
If a spouse dissipates an income-producing asset, the reduction in income can be attributed to that spouse.
Marital waste can also be a ground for deviation from the guidelines.
Understanding the role of property and assets in determining spousal maintenance income helps ensure a fair assessment of a spouse’s financial resources and their ability to support themselves after divorce.
Understanding how income is determined is essential in calculating spousal maintenance accurately. These guidelines help ensure fairness and consistency in awarding spousal support based on the parties’ financial circumstances.
Determining the Duration of Spousal Maintenance
In Arizona, the duration of a spousal maintenance (alimony) award is based on the goal of enabling the receiving spouse to become self-sufficient. Here’s a simplified explanation of this section:
A. Arizona’s policy on spousal maintenance duration:
Spousal maintenance is awarded for a period necessary to help the receiving spouse achieve financial independence.
The duration is linked to the time required for the receiving spouse to become self-sufficient through diligent efforts in obtaining training and skills.
B. How is the duration determined?
- Length of Marriage: The length of the marriage is calculated from the date of marriage to the date of the dissolution or legal separation petition.
Periods of physical separation without the initiation of proceedings are included in the calculation. - Duration Ranges: The duration range for spousal maintenance depends on the length of the marriage. It varies from up to 12 months for marriages up to 24 months, up to 36 months for marriages of [24 months or more] to 60 months, and so on.
However, the “Rule of 65” applies when the age of the party seeking maintenance plus the marriage length equals or exceeds 65. In such cases, the duration is determined individually. - Disability of the Receiving Spouse: a) Permanent Disability: If the receiving spouse has a condition preventing self-sufficiency, the duration is determined on a case-by-case basis. b) Indefinite Disability: In cases where the impact of a disability on future earning ability is uncertain, it’s advisable to establish a fixed-term award. The receiving spouse can file a modification petition to extend the award if the disability continues before its expiration.
Determining the Specific Duration of Spousal Maintenance
To determine the specific duration of a spousal maintenance (alimony) award within the applicable range, the court considers various factors, including:
- Standard of living during the marriage
- Length of the marriage
- Age, employment history, earning ability, and physical/emotional condition of the spouse seeking maintenance
- Ability of the other spouse to meet their own needs while supporting the spouse seeking maintenance
- Comparative financial resources and earning abilities of both spouses
- Contribution of the spouse seeking maintenance to the other spouse’s earning ability
- Sacrifices made by the spouse seeking maintenance for the benefit of the other spouse
- Financial resources of the spouse seeking maintenance and their ability to meet their own needs
- Time required for education or training to find suitable employment
- The starting date for a spousal maintenance award is typically the first day of the month following the entry of the divorce or separation decree.
- Temporary orders have their own starting date.
It’s important to note that Arizona law does not permit “lifetime” spousal maintenance awards. Fixed-term awards require the receiving spouse to prove substantial and continuing changed circumstances to extend the duration. Indefinite term awards shift the burden of proof to the paying spouse to establish changed circumstances for termination. The court assigns the burden of proof based on the circumstances, and a fixed-term award may be ordered if it’s more appropriate.
This ensures that spousal maintenance awards are not intended to be lifelong commitments, but rather temporary support with the opportunity for reassessment based on changing circumstances.
Deviations in Contested Spousal Maintenance Cases
In contested spousal maintenance cases, a deviation occurs when the court orders an amount of spousal maintenance that falls outside the preliminary target range. However, if the parties reach an agreement on the amount or duration of spousal maintenance, it is not considered a deviation.
For the court to deviate from the preliminary target range, it must make written findings stating why an amount within the range is inappropriate or unjust in the specific case. The court must also indicate what the order would have been without the deviation and what it is with the deviation.
In considering whether to deviate, the court takes into account various factors, including the standard of living during the marriage, length of the marriage, age, employment history, earning ability, and physical/emotional condition of the spouse seeking maintenance, comparative financial resources, contributions made by the spouse seeking maintenance, reduction in income or career opportunities, financial resources of the spouse seeking maintenance, excessive expenditures, health insurance costs, and other relevant factors.
The court may deviate if there is evidence that one spouse pays more than half of the specified expenses used in the spousal maintenance calculator or if there are additional extraordinary expenses not included in the calculator. However, certain expenses like health insurance, utilities, housing, food, transportation, and more are already factored into the calculator and should not be used as grounds for deviation unless there is evidence of extraordinary expenses.
There are situations where it is not considered a deviation, such as awarding a step-down spousal maintenance amount that gradually decreases over time, determining that a spouse is self-sufficient or lacks the ability to pay, rounding off the monthly spousal maintenance amount, compromising on individual figures, or adopting an agreement reached by the parties if certain criteria are met.
It’s important to note that any agreements made during the pendency of a dissolution or legal separation case should be made with knowledge of the spousal maintenance amount that would have been ordered under the guidelines.
Exceptions in Contested Spousal Maintenance Cases
In contested spousal maintenance cases, a deviation occurs when the court orders an amount of spousal maintenance that falls outside the preliminary target range. However, if the parties reach an agreement on the amount or duration of spousal maintenance, it is not considered a deviation.
For the court to deviate from the preliminary target range, it must make written findings stating why an amount within the range is inappropriate or unjust in the specific case. The court must also indicate what the order would have been without the deviation and what it is with the deviation.
In considering whether to deviate, the court takes into account various factors, including the standard of living during the marriage, length of the marriage, age, employment history, earning ability, and physical/emotional condition of the spouse seeking maintenance, comparative financial resources, contributions made by the spouse seeking maintenance, reduction in income or career opportunities, financial resources of the spouse seeking maintenance, excessive expenditures, health insurance costs, and other relevant factors.
The court may deviate if there is evidence that one spouse pays more than half of the specified expenses used in the spousal maintenance calculator or if there are additional extraordinary expenses not included in the calculator. However, certain expenses like health insurance, utilities, housing, food, transportation, and more are already factored into the calculator and should not be used as grounds for deviation unless there is evidence of extraordinary expenses.
There are situations where it is not considered a deviation, such as awarding a step-down spousal maintenance amount that gradually decreases over time, determining that a spouse is self-sufficient or lacks the ability to pay, rounding off the monthly spousal maintenance amount, compromising on individual figures, or adopting an agreement reached by the parties if certain criteria are met.
It’s important to note that any agreements made during the pendency of a dissolution or legal separation case should be made with knowledge of the spousal maintenance amount that would have been ordered under the guidelines.
Modifications in Spousal Maintenance
When seeking to modify the duration of a spousal maintenance award, the receiving spouse must demonstrate substantial and continuing changed circumstances that have occurred after the initial award was granted. The modified term of the award cannot exceed the maximum applicable duration range set by the guidelines.
The retirement of the paying spouse can constitute a change in circumstances for modification purposes, even if the retirement was anticipated at the time of the original award. Arizona case law supports this, emphasizing that future events or speculations about employment should not be considered when establishing spousal maintenance rights. The affected party should wait until retirement occurs to seek modification or termination of the award.
