Family law reform is gaining momentum in New York
State: last month lawmakers legalized
same-sex marriage, while last year they adopted no-fault divorce, allowing
couples to end a marriage without a demonstration of wrongdoing. In separate legislation
adopted at the same time, New York also became one of the few states to adopt a
formula for setting certain alimony awards, making them fairer and predictable.
The rest of the country should do the same.
According to the Internal Revenue Service, former spouses
pay around $9 billion in alimony each year. The amounts and payment schedules
are usually decided by family court judges using a list of factors, including
the length of the marriage, the ages and health of the spouses, their financial
situations, their earning potential and their contributions to the marriage,
financial and otherwise.
These criteria are sensible enough. But judges are on their
own in deciding how to prioritize the various factors and how to translate them
into dollar amounts, resulting in wildly inconsistent alimony awards. When
asked how much alimony a lifelong homemaker married to a doctor deserved,
judges in Ohio survey estimated as little as $5,000 a year and as much as
$175,000.
The unpredictability of alimony rules imposes several
costs. Negotiating a settlement deal is
much harder when spouses have no idea what they’ll end up with if they take
their chances in court. Litigation drags on and the bills pile up when lawyers
and experts have to prove their clients deserve any alimony at all.
All the while, the emotional costs mount as people awaiting
divorce continue in unhappy marriages; some stay married indefinitely because they
don’t know if divorce will leave them with enough money to make it on their
own. That’s particularly troubling in cases of domestic violence: some wives
endure years of abuse because they can’t be sure husbands who control the
family finances will be required to give them the money they need to live if
they leave.
New York’s law minimizes these costs by establishing a
mathematical formula to calculate temporary alimony, which one spouse pays the
other while the divorce is pending; it also allows judges to adjust those
awards up or down under special circumstances.
Under the formula, alimony is set at 30 percent of the
higher-earning spouse’s income, minus 20 percent of the lower-earning spouse’s,
as long as the recipient doesn’t end up with more than 40 percent of the couple’s
combined income. For example, a banker making $500,000 a year married to a
writer earning $50,000 could expect to pay around $140,000 a year.
Along with New York, Pennsylvania and Colorado have also
switched to numerical guidelines. But these apply only to temporary alimony,
which ends once a divorce is finalized; no state has applied a formula to
alimony, which is paid for months or years following a divorce.
There is no reason they, and the rest of the country,
shouldn’t go all the way: the group that created the formula adopted by the
Legislature, the American Academy of Matrimonial Lawyers, intended it to be
used for all alimony awards.
Moreover, several local bar associations and family law
organizations have come up with their own, slightly different, formulas for
permanent alimony, giving state legislatures plenty of models to choose from.
And lawmakers, recognizing that no formula will get it right every time, cal
also allow judicial discretion to modify alimony awards in unusual
circumstances.
In fact, judges already have the discretion to rely on formulas
if they want. But many are reluctant because state laws tell them to rely on
their own judgment; consulting a mathematical formula can thus seem like a
dereliction of duty.
Maryland has taken the lead in putting this concern to rest.
Last year its top court ruled that, even though the state alimony law mandates
that judges exercise discretion, it allows for them to consult a formula to
inform their decisions. That’s a big victory: it’s a lot harder for judges to
make outlandishly large or small awards when parties can point them to an
objective standard.
Legislatures should go further and require judges to start
with alimony formulas, and then apply discretion. Changing alimony from a
gamble to something more predictable would make the judges jobs a lot easier –
and the divorce process a lot fairer.
Source: NY Times –
2011/07/04 (Written by Yale Law School graduate Alexandra Harwin)