Suppose you’re trying to understand New York’s spousal maintenance formula. In that case, you’re probably staring at a combination of percentages and income caps, wondering how they translate into real dollars in your situation. You’re not alone in finding this confusing. The formula itself isn’t particularly complex mathematically, but the way it works produces results that can feel counterintuitive until you understand the financial logic behind it.

Let me walk you through how this actually works, why New York uses two different formulas, and what the current income thresholds mean for your financial planning. More importantly, I’ll show you why understanding these mechanics matters so much more in mediation, where you maintain control over the outcome, than in litigation, where you’re stuck with whatever the formula spits out.

The Two-Formula System: Which One Applies to You?

New York doesn’t use a one-size-fits-all approach to spousal maintenance. Instead, the state uses two different formulas depending on your specific situation, and which formula applies makes a meaningful difference in the outcome.

The Lower Formula (20%/25%) applies when child support is involved, and the person paying maintenance is also the non-custodial parent. This is the most common scenario when you have children and one parent has primary custody.

The Higher Formula (30%/20%) applies in two situations: when there are no children requiring support, or when the person paying maintenance is actually the custodial parent. This second scenario surprises people, but it makes sense when you think about it. If you’re already shouldering the day-to-day expenses of raising the children, the formula recognizes you have less income available for maintenance payments.

Here’s what these formulas actually calculate. Both run two separate calculations and use whichever produces the lower number. For the Lower Formula, you calculate 20% of the payor’s income minus 25% of the payee’s income. For the Higher Formula, it’s 30% of the payor’s income minus 20% of the payee’s income. But then both formulas run a second calculation that effectively sets a ceiling on maintenance.

The 40% Combined Income Ceiling: Understanding the Financial Logic

Learn how New York’s 40% combined income rule caps guideline spousal maintenance, showing how combined household income, income disparity, and support calculations affect the final award during divorce mediation. Call (877) 732-6682 for guidance from Equitable Mediation

This is where people often get confused, and it’s actually the most essential part of understanding how maintenance works in New York. The second calculation takes 40% of your combined income and subtracts the lower-earning spouse’s income. This effectively creates a ceiling on maintenance.

Why 40%? The approach is designed so that after receiving maintenance, the lower-earning spouse doesn’t end up with more than 40% of the household income during the marriage. This ceiling prevents maintenance awards from being so high that they reverse the income disparity or create an unsustainable burden on the payor.

Let me show you why this matters with a real example. Suppose you earn $200,000 and your spouse earns $80,000, with no child support involved. Using the Higher Formula’s first calculation: 30% of $200,000 equals $60,000, minus 20% of $80,000, which is $16,000, giving you $44,000. But when you run the second calculation, 40% of the combined $280,000 is $112,000, minus the payee’s $80,000, leaving just $32,000. Because this second calculation is lower, $32,000 becomes the guideline amount.

This produces a counterintuitive result. Using just the percentage-based calculation suggested a $44,000 payment, but the 40% ceiling brought it down to $32,000. The formula essentially says that giving the lower-earning spouse $32,000 in maintenance on top of their $80,000 income brings their income to $112,000, which is precisely 40% of the combined income. That’s where New York draws the line.

In litigation, you’re stuck with this result regardless of whether it makes sense for your situation. In mediation, this guideline becomes a starting point for discussing what actually works for both of you. Maybe the $32,000 figure feels right, or maybe your specific circumstances suggest a different number makes more sense. The difference is you’re making that decision together rather than having it imposed on you.

The $228,000 Income Cap and What It Really Means

Understand how New York’s $228,000 payor income cap impacts spousal maintenance formulas, including capped calculations, discretionary income considerations, and mediation-based support negotiation. Call (877) 732-6682 for guidance from Equitable Mediation

As of March 2025, New York caps the payor’s income at $228,000 for purposes of the maintenance formula. This doesn’t mean maintenance stops if you earn more than this amount. Instead, the formula only applies automatically to income up to that threshold.

If your income exceeds $228,000, the formula first calculates what it would produce on the capped amount. Then, for income above the cap, you and your spouse have discretion to agree on additional maintenance after considering factors like the length of your marriage, your respective ages and health, each person’s earning capacity, and the standard of living you established during the marriage.

This creates an important planning consideration. If you’re the higher-earning spouse making $300,000, the formula will automatically calculate maintenance on $228,000 of that income. The remaining $72,000 becomes a matter of negotiation. In mediation, this discretionary portion gives you room to discuss what feels fair given your specific circumstances, taking into account everything from your variable compensation structure to future career plans to your children’s needs. In litigation, you’re leaving these decisions to someone who knows nothing about your family and has no stake in finding a solution that actually works.

The Self-Support Reserve: The Floor Beneath the Formula

While the 40% combined income calculation creates a ceiling, the self-support reserve creates a floor. As of March 2025, this figure is $21,128 annually. This represents 135% of the federal poverty guideline for a single person and is designed to ensure that paying maintenance doesn’t leave you unable to meet your basic needs.

If the formula produces a maintenance award that would drop your income below $21,128, the amount gets automatically adjusted. Instead of paying what the formula calculates, you’d pay only the difference between your income and the self-support reserve. If your income is already below the self-support reserve, there’s a presumption that no maintenance should be awarded at all.

This provision recognizes a fundamental financial reality. You can’t sustain New York spousal maintenance payments if doing so leaves you without enough income to cover your own housing, food, and basic expenses. The self-support reserve ensures the formula doesn’t create an impossible financial situation for the payor.

Why Understanding These Thresholds Matters for Your Planning

These numbers aren’t just abstract concepts. They’re critical reference points for your financial planning during divorce. Knowing that the formula caps at $228,000 helps you understand which portion of your income negotiation will be formula-driven and which will be discretionary. Understanding the self-support reserve helps you gauge whether you’re in a situation where the standard formula even applies, or whether you’ll need to focus on demonstrating why a reduced amount, or no maintenance, is appropriate.

The 40% ceiling is significant for financial planning because it tells you the maximum percentage of combined income the payee spouse could receive. If you’re the lower-earning spouse, this helps you set realistic expectations. If you’re the higher-earning spouse, it helps you understand the upper boundary of your potential obligation under the formula.

These thresholds also get periodically adjusted based on changes in the Consumer Price Index and federal poverty guidelines. The figures I’ve shared here are current as of March 2025, but they’ll likely increase in future years. This is worth considering if you’re negotiating a long-term maintenance arrangement.

The Financial Reality Behind the Formulas

Here’s what’s important to understand about why New York designed the system this way. The two-formula approach recognizes that child support obligations reduce the income available for maintenance. The 40% ceiling acknowledges that, while one spouse may have earned less during the marriage, maintenance shouldn’t result in that spouse receiving a disproportionate share of the total income. The income cap recognizes that extremely high earners need individualized analysis rather than formula-based calculations. And the self-support reserve ensures the payor can still meet basic needs.

These aren’t arbitrary numbers. They reflect careful consideration of how to balance both spouses’ needs while recognizing the economic realities of divorce. When you’re sitting across from your spouse in mediation, understanding this financial logic helps you have more productive conversations about what feels fair given your specific situation.

The formula provides a starting point for negotiations, not an immutable answer. In mediation, you have the flexibility to discuss whether the guideline amount makes sense for your circumstances, whether paying it over a different time period would work better for both of you, or whether other factors in your situation warrant a different approach. The key is understanding what the formula produces and why, so you can have informed discussions about whether it fits your needs.

Making the Formula Work for Your Family, Not Against It

A mediator helping spouses interpret New York’s spousal maintenance formula, including income analysis, variable compensation, and customized support planning for long-term financial stability. Call (877) 732-6682 for guidance from Equitable Mediation

You’re navigating something genuinely complex here, and feeling uncertain about these calculations is entirely normal. But here’s what you need to understand. In litigation, these formulas get applied mechanically by someone who doesn’t know your family, your plans, or what matters most to you. The result might be technically correct, but it would be utterly impractical for your actual situation.

In mediation, these same formulas become tools for discussion rather than rigid mandates. You can explore whether the guideline amount makes sense given your specific income structure, whether stepdown provisions might work better than a flat payment, or whether other considerations in your situation should affect the final number. That’s especially important if your compensation includes bonuses, stock options, or other forms of variable income that make rigid formulas problematic.

We help couples navigate these calculations with an understanding that goes beyond just plugging numbers into formulas. With an MBA in finance and years of experience working with complex compensation structures, we can help you understand not just what the formula produces, but whether that result makes financial sense for your family’s future. We don’t just calculate the guideline amount and call it done. We help you think through how maintenance fits into your complete financial picture and work with both of you to find solutions that provide security for the lower-earning spouse while remaining sustainable for the payor.

The difference between mediation and litigation isn’t just about saving money or avoiding court. It’s about maintaining control over decisions that will shape your financial life for years to come. Working with a mediator who combines financial expertise with years of mediation experience gives you the best chance of reaching an agreement that works not just on paper, but in reality.

“You may have researched how alimony works in your state. But in my experience, regardless of whether a state offers guidance on how to resolve alimony, often, couples negotiate their own agreement tailored to their unique situation and circumstances.

So you have a lot of flexibility and can maintain a lot of control if you negotiate the terms of alimony out of court with the help of a skilled professional using an alternative dispute resolution process like divorce mediation or a collaborative divorce .

You and your soon-to-be ex-spouse will more likely come to an alimony arrangement that's acceptable to both of you."

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Joe Dillon | Divorce Mediator & Founder

FAQs About Spousal Maintenance in New York

Spousal maintenance is the current legal term in New York for financial support that one spouse pays to another during or after divorce. “Alimony” is an older term replaced in New York law years ago. The purpose is to help the financially dependent spouse meet reasonable needs and become self-supporting.

In mediation, we discuss maintenance as part of your overall financial planning rather than as something imposed by external rules. Understanding that maintenance serves as a bridge to financial independence helps frame productive conversations about what makes sense for your specific situation.

New York recognizes three types: informal spousal support during separation, temporary maintenance paid during the divorce process, and post-divorce maintenance paid after finalization.

Temporary maintenance helps maintain financial stability while the divorce proceeds, while post-divorce maintenance facilitates the transition to financial independence. Receiving temporary maintenance doesn’t automatically guarantee post-divorce maintenance.

In mediation, we help you structure the transition between phases using step-down provisions or rehabilitative plans that align with realistic timelines. This integrated approach works better than treating phases separately, which often happens in litigation.

New York uses statutory formulas that consider both spouses’ incomes and whether child support is involved. Without child support, the formula subtracts 20% of the receiving spouse’s income from 30% of the paying spouse’s income. With child support, it subtracts 25% of the receiving spouse’s income from 20% of the paying spouse’s income. There’s also a check calculation: 40% of combined income minus the receiving spouse’s income. The lower result generally serves as the guideline amount.

As of 2025, the formula applies to income up to $228,000. For income above that cap, how New York approaches maintenance becomes more discretionary, based on factors like standard of living during the marriage, earning capacity, career sacrifices, and health conditions.

While these formulas provide a starting point, they often produce results that don’t match real-world circumstances. In mediation, we calculate what the guidelines would produce, then explore whether that makes sense for your situation or whether creative alternatives might work better. With an MBA in finance, we can model different scenarios, show you tax implications, and help you understand long-term financial impact. This rigorous financial analysis goes well beyond simply plugging numbers into a formula.

How New York approaches duration depends on marriage length. For 0-15 year marriages, maintenance typically ranges from 15-30% of the marriage length. For 15-20 year marriages, it’s 30-40%. For marriages over 20 years, it’s 35-50%.

These are ranges, not fixed rules. A twelve-year marriage might result in maintenance for roughly 2-4 years, depending on factors like age, employability, and career sacrifices. Maintenance typically ends when either spouse dies or when the receiving spouse remarries.

In mediation, we model different duration scenarios and their long-term impacts. We help you think through whether standard ranges make sense or whether step-down provisions or review mechanisms would work better.

Qualification requires demonstrating financial need—meaning you lack sufficient income or assets to meet reasonable expenses—while the other spouse has the financial ability to provide support. If both spouses earn similar incomes and have comparable resources, maintenance is unlikely.

How New York evaluates eligibility involves examining income disparity, particularly where one spouse sacrificed career opportunities to support the family. The requesting spouse’s employability skills and realistic earning potential matter. A spouse’s role as homemaker or support system for the higher-earning spouse’s career is relevant.

In mediation, we examine actual earning capacity, career timelines, and financial needs with specificity rather than making worst-case or best-case assumptions.

How New York approaches maintenance involves thirteen statutory factors: age and health of both parties, earning capacity, need for education or training expenses, wasteful dissipation of marital property, domestic violence that inhibited earning capacity, medical insurance availability and cost, care of children, reduced lifetime earning capacity due to forgone career opportunities, pre-marital joint household duration, contributions to the marriage, property distribution, tax consequences, and other relevant factors.

In litigation, attorneys argue about how these factors apply. In mediation, we work through them together to build shared understanding and structure maintenance that acknowledges what’s most important to both of you.

No, maintenance is not automatic. Unlike child support which is mandatory when children are involved, maintenance is based on specific financial circumstances.

In litigation, someone petitions for maintenance and makes arguments about why it should be awarded. In mediation, you can have open conversations about whether maintenance makes sense, how much, and for how long, without adversarial positioning. You can negotiate your own arrangement as part of a comprehensive settlement that considers property division, tax planning, and your long-term goals together.

This flexibility is one of mediation’s most valuable advantages.

For divorces finalized after January 1, 2019, federal tax law changed significantly: the paying spouse can no longer deduct maintenance payments, and the receiving spouse doesn’t report them as income on federal returns. However, New York state tax law didn’t change—maintenance payments remain deductible for the paying spouse and taxable to the receiving spouse on state returns.

This creates a split where you must file federal and state taxes differently regarding maintenance. The federal tax law change eliminated what had been a significant incentive for higher maintenance amounts, as payors could previously reduce their taxable income through these deductions.

This tax complexity is exactly where financial expertise makes a critical difference. Understanding the actual after-tax cost and benefit requires sophisticated modeling that most people—and many mediators—aren’t equipped to do. With an MBA in finance, we can model the tax impact accurately, show you side-by-side scenarios, and help you structure maintenance in ways that maximize the benefit to both parties when tax treatment is considered. This kind of analysis can reveal opportunities for structuring agreements that litigation simply doesn’t accommodate.

Yes, lump-sum maintenance is possible. Rather than monthly payments over time, one spouse provides the full maintenance amount upfront.

This works when the paying spouse has sufficient liquid assets and values finality. For the receiving spouse, benefits include immediate access to funds and no concerns about future ability or willingness to pay. However, recipients lose flexibility since lump-sum payments typically can’t be modified.

Evaluating whether lump-sum maintenance makes sense requires rigorous financial analysis: calculating present value of payment streams, assessing liquidity and tax implications, and understanding opportunity costs. This is where financial expertise matters significantly.

As of 2025, New York’s statutory formula applies to income up to $228,000. For income above that cap, how maintenance is determined becomes more discretionary based on factors like standard of living during the marriage, financial needs, and ability to maintain reasonable needs while providing support.

When you’re dealing with income above the cap, financial sophistication becomes essential. Rather than a simple formula, you’re negotiating based on complex factors, often involving variable compensation like bonuses, stock options, or business income. In mediation with financial expertise, we can analyze these complex structures, model different scenarios, and help you structure agreements that make financial sense.

The Mediation Advantage for Maintenance Discussions

Throughout these FAQs, you’ve seen references to mediation as an alternative to litigation. In litigation, attorneys fight over what guidelines produce and argue about how factors apply. You’re spending tens of thousands on adversarial processes that often produce outcomes neither party accepts. For co-parents, this poisons the relationship foundation you need for years ahead.

In mediation, you’re working together to understand what the guidelines say, whether they fit your circumstances, and what alternatives might work better. When you combine that collaborative process with genuine financial expertise—the ability to model scenarios, calculate present values, analyze tax impacts, and structure creative solutions—you get agreements that are both fair and sustainable.

That’s what makes the difference between maintenance arrangements that work and ones that create ongoing conflict.

Lay the groundwork for a peaceful divorce

About the Authors – Divorce Mediators You Can Trust

Equitable Mediation Services is a trusted and nationally recognized provider of divorce mediation, serving couples exclusively in California, New Jersey, Washington, New York, Illinois, and Pennsylvania. Founded in 2008, this husband-and-wife team has successfully guided more than 1,000 couples through the complex divorce process, helping them reach amicable, fair, and thorough agreements that balance each of their interests and prioritizes their children’s well-being. All without involving attorneys if they so choose.

At the heart of Equitable Mediation are Joe Dillon, MBA, and Cheryl Dillon, CPC—two compassionate, experienced professionals committed to helping couples resolve divorce’s financial, emotional, and practical issues peacefully and with dignity.

Photo of mediator Joe Dillon at the center of the Equitable Mediation team, all smiling and poised around a conference table ready to assist. Looking for expert, compassionate divorce support? Call Equitable Mediation at (877) 732-6682 to connect with our dedicated team today.

Joe Dillon, MBA – Divorce Mediator & Negotiation Expert

As a seasoned Divorce Mediator with an MBA in Finance, Joe Dillon specializes in helping clients navigate complex parental and financial issues, including:

  • Physical and legal custody
  • Spousal support (alimony) and child support
  • Equitable distribution and community property division
  • Business ownership
  • Retirement accounts, stock options, and RSUs

Joe’s unique blend of financial acumen, mediation expertise, and personal insight enables him to skillfully guide couples through complex divorce negotiations, reaching fair agreements that safeguard the family’s emotional and financial well-being.

He brings clarity and structure to even the most challenging negotiations, ensuring both parties feel heard, supported, and in control of their outcome. This approach has earned him a reputation as one of the most trusted names in alternative dispute resolution.

Photo of Cheryl Dillon standing with the Equitable Mediation team in a bright conference room, all smiling and ready to guide clients through an amicable divorce process. For compassionate, expert support from Cheryl Dillon and our team, call Equitable Mediation at (877) 732-6682 today.

Cheryl Dillon, CPC – Certified Divorce Coach & Life Transitions Expert

Cheryl Dillon is a Certified Professional Coach (CPC) and the Divorce Coach at Equitable Mediation. She earned a bachelor’s degree in psychology and completed formal training at The Institute for Professional Excellence in Coaching (iPEC) – an internationally recognized leader in the field of coaching education.

Her unique blend of emotional intelligence, coaching expertise, and personal insight enables her to guide individuals through divorce’s emotional complexities compassionately.

Cheryl’s approach fosters improved communication, reduced conflict, and better decision-making, equipping clients to manage divorce’s challenges effectively. Because emotions have a profound impact on shaping the divorce process, its outcomes, and future well-being of all involved.

What We Offer: Flat-Fee, Full-Service Divorce Mediation

Equitable Mediation provides:

  • Full-service divorce mediation with real financial expertise
  • Convenient, online sessions via Zoom
  • Unlimited sessions for one customized flat fee (no hourly billing surprises)
  • Child custody and parenting plan negotiation
  • Spousal support and asset division mediation
  • Divorce coaching and emotional support
  • Free and paid educational courses on the divorce process

Whether clients are facing financial complexities, looking to safeguard their children’s futures, or trying to protect everything they’ve worked hard to build, Equitable Mediation has the expertise to guide them towards the outcomes that matter most to them and their families.

Why Couples Choose Equitable Mediation

  • 98% case resolution rate
  • Trusted by over 1,000 families since 2008
  • Subject-matter experts in the states in which they practice
  • Known for confidential, respectful, and cost-effective processes
  • Recommendations by therapists, financial planners, and former clients

Equitable Mediation Services operates in:

  • California: San Francisco, San Diego, Los Angeles
  • New Jersey: Bridgewater, Morristown, Short Hills
  • Washington: Seattle, Bellevue, Kirkland
  • New York: NYC, Long Island
  • Illinois: Chicago, North Shore
  • Pennsylvania: Philadelphia, Bucks County, Montgomery County, Pittsburgh, Allegheny County

Schedule a Free Info Call to learn if you’re a good candidate for divorce mediation with Joe and Cheryl.

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