Pennsylvania Alimony Negotiation: Mediator-Proven Strategies for Agreement

When it comes to child support, there’s a mathematical formula that outputs a specific minimum amount a party should pay to support their children. And the formula is based on a series of clearly defined inputs. That amount is then used as the basis for the support of the children from the day the divorce is final and forward. But when it comes to how alimony is calculated in PA divorce cases, it’s an entirely different story.

You may have heard that there is an alimony formula in Pennsylvania. And you’d be partially correct. But, that alimony calculation only applies to monies paid from one party to the other before you’re divorced – which is known as spousal support in PA (temporary alimony).

You see, there are times when parties live apart while still married – before their divorce is finalized. For example, say one of you gets an apartment and one if you stays in the marital home with the kids. Because you’ve yet to negotiate the full terms of your divorce – but there are still bills to be paid – a temporary PA spousal support number is calculated to keep both households running. But that’s where the calculation of financial support between spouses/ex-spouses in a Pennsylvania divorce ends.

Determining alimony is done using a series of 17 factors, and not by a mathematical formula.

The alimony factors in PA are:

(1) How much each of the spouses currently earn, and how much the spouses could possibly earn in the future;

(2) The ages and general overall health of each spouse from both a physical and mental standpoint;

(3) Where each spouse gets their income be it from investments, retirement savings, an insurance payout, or other sources of income;

(4) How long each party may live and if either party is expecting any inheritances;

(5) The duration of the marriage;

(6) If one spouse supported or contributed to the other receiving an advanced degree which in turn increased that party’s earning potential;

(7) If one party is home raising the children and in doing so, is either unable to work and earn enough income to cover their expenses, or if that party’s expenses are higher because of their role in raising the children;

(8) The marital lifestyle the parties established while together;

(9) What the education level is for each spouse, and how long it might take for the person receiving alimony to achieve such an education level that would permit them to become more self-sufficient;

(10) What each party has in terms of assets and liabilities;

(11) What assets each spouse brought into the marriage, and which assets may still remain separate property once the divorce is final;

(12) The contributions one spouse made in keeping the marital home in order;

(13) What each party needs financially to live on post-divorce;

(14) If there was any infidelity or abuse;

(15) The tax implications of any alimony;

(16) Whether the dependent spouse (the one requesting alimony) lacks sufficient assets to provide for their own needs;

(17) If the party requesting alimony is unable to support themselves by working.

So now let me ask you a question… What do you notice about these alimony factors in PA?

Not a single one of them results in a specific dollar amount that you and your spouse can use as the basis for your Pennsylvania alimony agreement!

Leaving you no choice but to negotiate it.

As if figuring out alimony in PA wasn’t hard enough, there’s one more factor you need to bring into the mix. And that’s your cost of living. Say your marital home was in Wayne, in Delaware County. And you’re the one paying alimony. And your recipient spouse is moving to Quakertown in Upper Bucks County after the divorce. There’s a pretty significant difference in the cost of living between these two places!

Do you pay them based on what it cost to live in Wayne? Or do you pay them based on what it will cost to live in Quakertown? Good question…

Given Pennsylvania’s size, and proximity to six other US states, in our experience it’s not unusual for one party to move out of PA, post-divorce. For example, we’ve seen a Bucks County client cross the border to be closer to their job in New Jersey (a higher cost-of-living area) and a Pittsburgh client leave the Steel City to start a farm in WV (a lower cost-of-living area.) While changes in the cost of living within the state of Pennsylvania can complicate the negotiation of alimony, relocation outside the state can as well.

Determining an amount of alimony is just one piece of a larger picture. You also need to address how long it will last. Which much like determining an amount, duration is not so easy to agree on.

And there’s no set formula for determining how long you have to be married to get alimony in PA.

So the answer once again is – you and your spouse will have to negotiate it.

But there are other, more creative ways to resolve this because some people just don’t like paying alimony. For example, sometimes people will trade alimony for equitable distribution. Or do lump sum aimony or an alimony buyout. The bottom line is there’s no such thing as “typical alimony.” And there are many different ways to resolve this complex issue as I’m about to share.

That can be awarded in a Pennsylvania divorce. And they are:

1. Rehabilitative alimony

This type of alimony is paid by one ex-spouse to another, for a specific purpose, and (typically) for a short period of time. It is intended to allow the recipient spouse to receive training or certification in a chosen field, in order to return to the workforce and increase their chances of becoming self-sufficient.

Rehabilitative alimony is often paid in conjunction with the second type of alimony which is:

2. Permanent (or durational) alimony

While the name “permanent alimony” may suggest that alimony will be paid by the payor spouse until the day either they or their ex-spouse, passes away, that’s not really the case in PA anymore. Most alimony awards in Pennsylvania now have a finite duration. It may be a certain number of years, or a defining event such as retirement, that causes the payment to terminate, and the duration to be fulfilled.

This type of alimony is paid by the higher-earning spouse to the lower-earning spouse in order to ease the transition from married to single. And allow both parties to live in a manner roughly equivalent to each other post-divorce.

3. Reimbursement alimony

Let’s say you and your soon-to-be-ex decided during the marriage that you were going to work, while she or he went to medical school (and was a dependent spouse). So you supported them while they were getting their education by paying all the household bills, their tuition bills, and generally keeping the financial ship afloat. Now they graduated, met someone else, and want a divorce. That’s where reimbursement alimony comes in.

Reimbursement alimony in PA recognizes the contribution you (or your ex-spouse) made to the household, and allows you to recover some of those expenditures.

One more thing…

In case you’re curious, yes, you can receive (or pay) more than one type of alimony in PA.

As you’re learning, alimony is not a one-size-fits-all topic and every couple’s situation and circumstances are unique. So coming to a fair agreement on alimony with your soon-to-be ex-spouse requires more than just a passing conversation or a wild guess. And as you’re starting to see, there’s a lot involved in this highly complex matter. And a lot of places you can make costly mistakes.

For example, here’s a question most parties forget to ask: Is alimony taxable in PA? And once again, the answer is it depends. In its most basic form, yes, alimony is taxable in PA. But just like everything in a divorce, there are exceptions to this rule.

And you and your spouse can negotiate it.

In the majority of cases, the issue of alimony in Pennsylvania is much too complex and emotional for you to attempt to determine on your own.

Because there’s no formula, if you go the attorney route, your family law attorneys can drag your negotiations out forever.

Fighting and fighting. Around and around in circles – in a very gray area. All while billing you their outrageous hourly fees.

Until neither you nor your spouse has any money left to keep paying your legal fees. And there’s no money left for alimony payments! Just one more reason it’s better to not involve divorce lawyers in your negotiations.

And if the issue cannot be resolved between the two of you and your lawyers, your case will go to court in the form of divorce litigation.

But there’s something you need to understand here: In a litigated divorce, a judge determines the alimony factors in PA, and what the resulting alimony payment and duration will be. Sounds scary – doesn’t it?/em> Because they’ll order the terms of the settlement and dictate what you’re going to pay or receive as the alimony payment.

And you might wind up with an alimony outcome you don’t think is fair or that doesn’t meet your needs.

That’s why it’s better to negotiate an amount and duration each spouse finds fair. And negotiation is exactly what divorce mediation is all about. In mediation, you get to decide – and come to an agreement you both agree is fair, instead of letting your future be decided by a stranger in court.

Using our extensive financial knowledge into the complex matters of alimony, we’ll help you determine which factors apply in your situation and discuss with both you both how they may impact the amount and/or duration of alimony in your Pennsylvania divorce.

We’ll actively guide you through our comprehensive budgeting process to reflect your marital as well as your projected post-marital expenses. So we can take a close look together at what each of you earns, spend, and will need to move forward.

We’ll then help you negotiate an alimony result you both find fair and will best enable you to meet your financial obligations after you’re divorced. And since we offer all-inclusive, flat-fee mediation services, we have no vested interest in prolonging the conflict because we don’t bill you hourly like lawyers would.

Why be forced to accept a settlement created by a divorce attorney or family law judge in court when you can have a direct say in your financial future instead?

If you want to arrive at an agreement on alimony that’s fair to each of you and doesn’t bankrupt you in the process, mediate your Pennsylvania divorce with Equitable Mediation.