Minnesota Alimony Calculator
Several states have set formulas for calculating alimony or spousal maintenance. Minnesota, however, is not one of them.
In Minnesota, spousal maintenance is calculated by balancing an obligor’s ability to pay versus the reasonable needs of the obligee. Additionally, courts will analyze statutory spousal maintenance factors which include but are not limited to the standard of living established during the marriage, the age/physical/emotional condition of the spousal maintenance obligee, the lost employment opportunities of the obligee, and the financial resources of the obligee.
In many cases, financial experts will prepare cash flow analysis which identifies the tax ramifications for a theoretical spousal maintenance award. These calculations take into the taxable nature of spousal maintenance to the obligee and the tax deductibility of spousal maintenance to the obligor. Please note that under Trump’s new tax plan, spousal maintenance awards entered on or after January 1, 2019 will no longer be tax deductible to the obligor or taxable as income to the obligee. My Law Partner, Beth Barbosa, wrote a detailed article which was featured in the Minneapolis Star Tribune regarding the elimination of the spousal maintenance deduction.
The cash flow analysis will also take into significant deductions such as mortgage interest and real estate taxes as well as child dependency exemptions. The cash flow is typically prepared to identify the amount of spousal maintenance needed to satisfy a specific budget or to otherwise equalize the net after tax cash flow of the parties.
Spousal Maintenance Calculators in Other States
New York, for example, has a set alimony calculator. New York has two formulas in which courts will adopt an alimony award based upon the lower of the two formulas. The formulas are as follows:
Formula 1: 20% of the obligee’s income minus 30% of the obligor’s income.
Formula 2: (The total income of both parties multiplied by 40%) minus the obligor spouse’s income.
New Minnesota Spousal Maintenance (alimony) law effective August 1, 2024
Commencing on August 1, 2024, new laws have been enacted in Minnesota which provides more certainty for spouses regarding the duration of spousal maintenance claims. Pursuant to the new law, apply the following rebuttable presumptions so long as the spousal maintenance factors are met and the duration of the award should be based upon the following lengths of marriage:
Less than five years– rebuttably presumed no maintenance should be awarded;
Five to less than twenty years– rebuttably presumed maintenance should be up to half of the length of marriage;
Twenty or more years– rebuttably presumed maintenance should be indefinite.
Please note the length of marriage is calculated from the date of marriage to the date of commencement of the divorce proceeding. The rebuttable presumptions give parties a better idea of what the duration of a spousal maintenance award may be.
Calculating Spousal Maintenance in Minnesota
In Minnesota, calculating spousal maintenance is not an exact science. It is a grey area and each case may turn depending on the particular facts of the case. Additionally, courts have broad discretion is determining the amount and duration of a spousal maintenance award. While one judge may believe a permanent spousal maintenance award should be awarded, another may believe a spousal maintenance award is unwarranted even under the same set of facts. Accordingly, it is critically important to retain an experienced attorney to make your best case regarding a potential spousal maintenance award or obligation. Please contact us for a free consultation, 952-529-5849.