Alimony 

Source: This section is drawn from the booklet entitled "Legal Rights in Marriage and Divorce in Maryland" produced by and available from The Women's Law Center.  Updated 3/30/01.

Alimony in Marital Settlement Agreements
Alimony Decided by a Court
Tax Consequences of Alimony
Attorney Fees
Displaced Homemakers Law

Alimony in Marital Settlement Agreements

Parties to a separation, limited divorce or absolute divorce may agree to pay alimony. The parties are free to agree to any amount. This agreement can be incorporated into a divorce decree. Marital Agreements.

Depending on the language of the agreement, the amount of alimony can be modified by the court or be fixed and unchangeable.  In order for a provision like alimony to be fixed and not modifiable by the court, the agreement must specifically state that the provision is not subject to modification by the court.  If the agreement does not contain such a statement, the award of alimony by the court will be modifiable by the court should the income or circumstances of either party change significantly. 

Alimony Decided by a Court

In the absence of an agreement, the court will determine alimony.  The right to alimony is not contingent upon divorce.  

During litigation, prior to the divorce, the court may award temporary alimony or alimony pendente lite.  To receive temporary alimony, a party must show financial need and the ability of the other party to pay.  The court has discretion in determining the amount.

Generally, the alimony award is made at the time of the divorce.  If the right to receive alimony is reserved at the time of the divorce, the court may later set the amount.  If either party obtains a valid divorce without alimony in another state, a Maryland court may determine the amount.

Whether and in what amount a court will award alimony depends on a variety of factors.  These factors include the following:

• The ability of the party seeking alimony to be wholly or partially self-supporting;
• The time deemed necessary by the court for the party seeking alimony to gain sufficient education or training to enable that party to find suitable employment;
• The standard of living of the parties established during the marriage;
• The duration of the marriage;
• The contributions, monetary and non-monetary, of each party to the well-being of the family;
• The facts and circumstances leading to the estrangement of the parties and the dissolution of the marriage; 
• Fault is not an absolute bar to alimony.  
• It is only one factor to be considered.  
• Therefore, the spouse seeking alimony can recover even if they are the party at fault if other factors support receipt.
• The age and physical and mental condition of each party.
• The ability of the party from whom alimony is sought to meet his or her needs while meeting those of the party seeking alimony;
• Any agreement between the parties;
• The financial needs and resources of both parties, including:
• All income and assets, including non-income producing property;
• Any marital property award;
• The nature and amount of the financial obligations of each party; and,
• The respective rights of the parties to receive retirement benefits; and,
• Such other factors as the court deems it necessary or appropriate to consider in order to arrive at a fair and equitable award of alimony.

The purpose of alimony is to provide an opportunity for the recipient spouse to become self-supporting.  If alimony is awarded, it is usually “rehabilitative alimony” for a certain period of time to allow a dependent spouse to become self-supporting. 

The court may award alimony for an indefinite period of time under two conditions.  First, if a dependent spouse cannot become self-supporting due to mental or physical disability.  Second, even if a dependent spouse becomes self-supporting there remains an “unconscionable disparity” between the spouses’ income.

Tax Consequences of Alimony

When considering alimony, it is important to look at the tax consequences of the payment.  Unless agreed to otherwise, alimony is usually taxable to the recipient and deductible from the income of the payor.

Attorneys Fees

Closely related to alimony is the obligation to pay attorney’s fees.  Under present law, one party can be ordered to pay money for the other’s lawyer and for all costs closely related to bringing an action for divorce, depending on the financial circumstances of the parties.  This includes court costs, and in some cases, even the cost of a private investigator.

Displaced Homemaker Law

A displaced homemaker is defined as an individual who is at least 35 years old; has worked for the individual’s family in the family home; is not gainfully employed; has had or would have difficulty in securing employment; and, has depended on the income of a family member and has lost that income as the result of separation or divorce.  Under the law, displaced homemakers are provided the counseling, training, employment placement assistance, services and health care that displaced homemakers need to continue as productive residents of the State of Maryland.

Last date of legal review 3/30/01.

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