Can Alimony Increase If My Ex Earns More in Michigan

When your ex-spouse starts earning more money, what happens to the alimony? You pay alimony, and your spouse earns around $50,000 every year. From 50K to 53.5K, your spouse begins to make a little more money. You cannot think of it as being significant. It’s not even worth mentioning. Can alimony increase if my ex earns more? 

Click here to watch the video on Can Alimony Increase If My Ex Earns More.

You will have to spend more money on hiring a lawyer and submitting the motion for modification. Probably more than the modest rise in alimony’s predicted benefit. In the long term, it is not worthwhile. When your ex-spouse starts earning between $50,000 and $100,000, that is a sizable change in income. There ought to be an impact. The court is looking for that. It merits taking another look at the figures. The court will also consider other elements. The substantial change will support reconsidering alimony.

What is the rationale behind spousal support?

Spousal support is also known as alimony. It is a financial payment made by one spouse to the other after a divorce. It is intended to help the financially dependent spouse. The amount is to help maintain a similar standard of living. A life close enough to what the spouse enjoyed during the marriage.

Two rationales for spousal support

There are two main rationales behind spousal support. 

  • The first is to recognize the contributions of the dependent spouse to the marriage. These contributions are usually oblivious to the working spouse. These are raising children which should be obvious. Providing unpaid care for sick or elderly spouses. Efforts are always forgotten in our busy journey to getting old. Sacrificing a career to support their spouse is hardly mentioned anywhere. 
  • The second rationale is to help the dependent spouse become self-sufficient after the divorce. This may involve providing them with financial help to get an education or training, or to help them find a job.

The statutory basis for spousal support

In Michigan, the law governing spousal support is found in the Michigan Marriage Code. The court will consider a number of factors when determining whether to award spousal support and the amount of support to award. These factors include:

  • The length of the marriage
  • The age, health, and earning capacity of each spouse
  • The education and training of each spouse
  • The standard of living established during the marriage
  • The financial resources of each spouse
  • The ability of each spouse to meet their own needs
  • The needs of any dependent children

Keep these in mind

Things to remember about spousal support in Michigan:

  • It is not always awarded. The court will only award support if it is necessary to achieve a fair and equitable result.
  • It can be temporary or permanent. Temporary support is awarded for a specific period. It is given while the dependent spouse gets an education or training. Permanent support is awarded for an indefinite period. It is provided until the dependent spouse remarries or dies.
  • It can be modified or terminated. It is done if there is a significant change in circumstances. These circumstances could be a paying spouse losing their job. It could be that the dependent spouse gets a raise.

Each spouse can satisfy their financial obligations by paying spousal support. These are obligations that are current and prospective in your divorce process. The support may vary in terms of frequency, intensity, and duration. It largely relies on the particulars of your situation. The amount and length of spousal assistance are decisions you and your spouse can make together. It is comparable to every other issue pertaining to divorce. The court will maintain such a ruling so long as no party receives unjust treatment.

When is the appropriate time to start a spousal support modification?

It’s possible that your situation and your spouse will change. The change affects your way of living. Your financial condition can drastically change. A new romance, a new job, and a move to a new town are all new beginnings for you. There can be additional things to take into account. The spousal support order may no longer be appropriate to your new life. Because of the circumstances involving you and your ex-spouse, it is no longer working. What circumstances necessitate a change in spousal support? To modify spousal support, a petition must be submitted. The sums paid or received may be raised or lowered. If any of the following circumstances relate to you, submit the request:

  • Changing employment to reduce the payor’s income or increase the recipient’s income;
  • One of the spouses or parties is retiring;
  • A medical ailment that renders one or both parties disabled. It is preventing them from working;
  • One of the parties’ passing;
  • One of the parties getting remarried;
  • The cohabitation of one of the parties. For an extended period of time, the ex-spouse cohabitates with another person in a home. The couple who lives together splits the cost of living; and,
  • Additional elements that the judge may take into account on a case-by-case basis.

The court can review and modify any order made in the initial action, including alimony. A party’s petition prompts the court to take action. Any of the parties may ask for the amount of spousal support to be increased, decreased, or terminated. Either the payor or the recipient may make one.

What is the process for the spousal support modification?

A party can file a petition to modify spousal support. The petitioning party must present new information. Prepare evidence that the situation has changed. You could mention major changes. Changes in circumstance after the initial divorce ruling. A strong legal foundation must be established. Attach a copy of the divorce judgment. Request an analysis of the divorce ruling from your lawyer. Your family law attorney in Michigan can draft a proposed modification for your spousal support. The petition must be delivered to the court. It should be submitted before a hearing date may be set. Whether a post-judgment alimony modification is necessary is decided at the hearing. The opposite party is entitled to reply in court. Both parties can provide arguments and witnesses. Each party can offer proof to back up their assertions. A Michigan court may adjust the terms of spousal support if circumstances change. The court may do so if the parties have not already agreed on a Consent Judgment of Divorce. The agreement can make it non-modifiable. Spousal support must always be included in the divorce decree. These requirements must explain how much support was granted. It should detail how long support will go on. 

How much financial support should a spouse get?

You may find yourself unable to reach an agreement on spousal support. It happens especially if there is not much conversation and negotiation about it. The courts have the authority to make a decision for you. It is not an ideal situation. It will lengthen your divorce process and increase your legal expenses of course. The following are considerations that the court ponders when determining spousal support.

How did each partner behave during the marriage?

The judge will assess the parties’ conduct. Who was to blame for the marriage’s demise? Spousal support cannot be awarded based only on blame.

How long did the marriage last?

The longer the marriage, the more likely the judge is to award spousal maintenance. This is especially important if one of the partners is unemployed. Lacks the required job skills.

Whether the parties can find work.

How likely is it that the spouse will land a job? There may not be opportunities for the spouse in the existing workforce. In this situation, the spouse has a better chance of obtaining court support. Spousal support that is only transitory may be allowed. The non-working spouse now has the chance to complete their education. It’s an opportunity to learn new skills.

What assets each spouse will be awarded in the divorce?

Which portion of the assets? How liquid are these assets? The property division divides the parties’ assets and liabilities. Judges consider the kind and quantity of property that each party will get. This information is used by the court to decide which person is in need of spousal support. A person is not required to utilize their property award to pay for their everyday expenses. The party getting the majority of non-cash assets is given support by the judge.

Ages of the parties.

The demand for spousal support will be greater for an older person. Especially one who has not worked during the marriage. The second spouse can be retired. The spouse may be living on a fixed salary. This may prevent the court from awarding spousal support. This is feasible if the support recipient is still working after reaching retirement age.

The current living arrangements of the parties.

The earning potential is one of the elements that the judge considers. The future prospects of either spouse are considered by the court.

The specific needs of each party.

The judge considers how the needs of each party impact their ability to provide support. How much support does the party need?

The level of each party’s health.

The state of health of a party can affect their ability to work. It may prevent one from meeting their own needs. This should be given particular consideration.

Whether each side is still helping those who are still in their lives.

The judge considers the couple’s duty to support their children. Judges take into account how they affect things. Matters in their lives such as their employment potential and financial resources.

How much did each party contribute to the joint estate?

The contribution each spouse made to the union is taken into account by the court. This extends beyond merely contributing money. The court sees the spouses’ contributions as being equal. These are examples of situations where the other spouse helped with child-rearing.

Whether either side is cohabitating.

The residence of a party is taken into consideration by the court. What impact would their living situation have on their financial status?

Fairness.

In the end, the court decides on spousal support and the proper amount to order. The judge takes into account what is fair and reasonable.

Based on the recognized factors, the court makes a decision regarding spousal support. It makes decisions based on important factors. The judge does not have to give each component the same amount of weight. A request for spousal support is possible. The court must make decisions based on all relevant information.

What is a substantial increase in earnings in the context of modifying spousal support?

The court may award spousal support to one spouse to help them maintain a similar standard of living. The court will try to approximate the standard they enjoyed during the marriage. The paying spouse may experience a substantial rise in earnings after the divorce. The receiving spouse may be able to modify the amount of alimony they can receive. But, what do you mean by a substantial increase?  In Michigan, a significant increase in earnings means an increase in income of at least 20%. A modest rise in income has an influence on the paying spouse’s capacity to pay alimony. The court may consider it significant. Here are some supporting jurisprudence on what is a substantial increase in earnings:

Michigan Court of Appeals Case Law

In the case of Hutchinson v. Hutchinson, 265 Mich. App. 562, 692 N.W.2d 35 (2005), the Michigan Court of Appeals held that:

“A substantial rise in earnings is generally considered to be an increase in income of at least 20%. However, the court may consider a smaller increase in income to be substantial if it has a significant impact on the paying spouse’s ability to pay alimony.” 

The above quotation comes from the Hutchinson v. Hutchinson case. This is a key case on the question of alimony adjustment in Michigan. The court ruled a 20% increase in profits is regarded as a significant increase in earnings. This is important when it comes to modifying alimony. The court also mentioned that the notion of a “substantial increase in earnings” varies from case to case. The court will eventually decide whether a certain increase in income is significant. It will be determined by considering all relevant factors.

Michigan Family Law Practice Manual

The Michigan Family Law Practice Manual, published by the State Bar of Michigan. It states, “A 20% increase in income is generally considered to be a substantial rise in earnings for the purposes of modifying alimony.”

Michigan Attorney General’s Office Guidance

The Michigan Attorney General’s Office provides guidance on alimony modification. It states that “a 20% increase in income is generally considered to be a substantial rise in earnings.”

Other matters to consider

Whether a rise in earnings is deemed substantial enough to warrant alimony modification will depend on the specifics of each case and the judge’s interpretation of the circumstances. Here are key points to understand about a substantial rise in earnings:

  • Change in Financial Circumstances. Alimony is to help the lower-earning spouse maintain a reasonable standard of living. The paying spouse’s significant increase in income can have an impact. It can tilt the financial balance between the parties. It can be substantial enough to justify a modification.
  • Determining Significance. What is considered “significant” or “substantial?” It depends on various factors. It can depend on the duration of the marriage. it can be on the original alimony amount. It can be based on the financial needs of the recipient’s spouse. It can also be based on the paying spouse’s new income level.
  • Duration and Consistency. A one-time spike in income may not necessarily lead to a modification. Courts often consider the duration. It considers the consistency of the higher income. It determines if it’s a long-term change or a temporary fluctuation.
  • Impact on Financial Obligations. The increased income should be significant enough to impact the paying spouse’s ability. It can help meet their financial obligations, including alimony payments. It should also consider the recipient spouse’s financial needs.
  • Burden of Proof. Your ex-spouse’s substantial increase in earnings justifies a modification of alimony. You can believe it but you’ll need to provide evidence to the court. Evidence can mean documentation of the change in income. The reasons for the increase. How it affects both parties’ financial situations.

There is no established formula for deciding how much spousal support you will get. It is not the same as child support. Spousal support amounts are set on a case-by-case basis.  The payment is designed to cover the needs of all parties. The property distribution to one side may not be enough. After the divorce, one side may find themselves in a worse financial situation. The opposing party can make up the money difference. A court can order a spouse to address the difference. The court can decide whether a certain increase in income is significant. It will base its decision on all relevant factors. The definition of “substantial rise in earnings” can vary. The court ultimately decides when a particular increase in income is substantial. It will be based on all the relevant factors. The factor can be the increase itself. It can also be the needs of the dependent spouse and the paying spouse’s ability to pay.

Subscribe to our YouTube channel today for more advice on Family Law!

Goldman & Associates Law Firm is here to with information about Child Custody and Divorce in the State of Michigan.

At Goldman & Associates Law Firm there’s always a sympathetic ear ready to listen.

Book your complimentary case evaluation with our leading attorneys. 

(248) 590-6600 CALL/TEXT if you need legal assistance.