Alimony in Texas Divorces is a hot topic. When going through a Texas divorce, one important issue to consider is financial support between spouses, often referred to as alimony or spousal maintenance. While both terms involve payments from one spouse to another after a divorce, they are not the same. Knowing the difference can help you make informed decisions about your financial future. In this blog, we’ll explain alimony, spousal maintenance, and how each works in a Texas divorce.
What is Alimony in Texas?
Alimony, also known as contractual alimony, is an agreement between spouses where one agrees to provide financial support to the other after a divorce. This type of alimony is based on a mutual agreement, and the terms—such as how much will be paid and for how long—are determined by the spouses themselves. Because of this flexibility, it’s an attractive option for couples who are willing to negotiate and come to terms without the court’s intervention.
However, contractual alimony has limitations. While it allows more freedom in setting up the terms, it’s harder to enforce if the paying spouse decides to stop making payments. In Texas, unpaid contractual alimony is considered a debt, and courts cannot use contempt or wage withholding to enforce these payments. This means the spouse who isn’t receiving the payments may need to file a lawsuit to enforce the contract.
What is Spousal Maintenance in Texas?
Spousal maintenance, on the other hand, is court-ordered financial support. Unlike alimony, spousal maintenance is only available under specific circumstances, as defined by Texas law (Chapter 8 of the Texas Family Code). A court will only order spousal maintenance if the requesting spouse meets certain requirements, such as:
- Family violence: If the spouse seeking maintenance was a victim of family violence within two years of filing for divorce or during the divorce process.
- Long marriage: If the marriage lasted at least 10 years and the spouse requesting maintenance cannot meet their basic needs after the divorce.
- Disability: If the spouse or a child from the marriage has a disability that affects their ability to earn income.
In each case, the spouse requesting spousal maintenance must show they cannot meet their “minimum reasonable needs” after the divorce.
Duration and Limits of Spousal Maintenance in Texas
Texas law sets strict limits on how long spousal maintenance can be paid, based on the length of the marriage:
- Less than 20 years: Maintenance can last up to 5 years.
- 20-30 years: Maintenance can last up to 7 years.
- More than 30 years: Maintenance can last up to 10 years.
Additionally, the amount of spousal maintenance a spouse can receive is capped at either 20% of the paying spouse’s gross monthly income or $5,000 per month—whichever is less.
Key Differences Between Alimony and Spousal Maintenance
While alimony and spousal maintenance may seem similar, there are important differences:
- Alimony is an agreement between spouses, allowing for more flexibility in terms of amount and duration, but it lacks the court’s enforcement powers.
- Spousal maintenance is a court-ordered payment that must meet specific legal requirements. It’s enforceable by the court through contempt or wage withholding, making it more secure but less flexible.
Pros and Cons of Alimony vs. Spousal Maintenance
Alimony Pros:
- More control over the terms.
- No strict limits on amount or duration.
- Cannot be modified.
Alimony Cons:
- Harder to enforce if payments stop.
- You may need to go to court to enforce the contract.
Spousal Maintenance Pros:
- Enforceable by the court, ensuring consistent payments.
- Protection for spouses in need of financial support who meet specific criteria.
Spousal Maintenance Cons:
- Limited in duration and amount.
- Harder to qualify for unless specific legal requirements are met.
- Can be modified if your ex loses his job or dies.
Tax Implications
Before 2018, alimony or spousal maintenance payments were tax-deductible for the paying spouse and taxable income for the receiving spouse. However, under the Tax Cuts and Jobs Act, this rule changed. Now, neither alimony nor spousal maintenance payments are deductible, and the spouse receiving payments does not have to report them as income.
Conclusion
Understanding the differences between alimony and spousal maintenance is crucial when navigating a Texas divorce. While contractual alimony offers flexibility, spousal maintenance provides more security through court enforcement. Each option has its pros and cons, and choosing the best one depends on your individual circumstances. If you’re going through a divorce in Texas, consulting with a family law attorney can help ensure you receive the financial support you need.
By understanding your rights and options, you can better prepare for life after divorce.