Alimony in Illinois Explained: Critical Facts That Affect Your Settlement

One way maintenance in Illinois may be determined is by using a guideline calculator. Provided they meet the requirements to use it, the guideline can help Illinois couples avoid the endless battles often associated with the topic. And minimize potential differences in maintenance settlement amounts between similar couples. Under the guideline formula a maintenance award would equal 33 1/3 percent of the payer’s net income minus 25 percent of the payee’s net income. This amount cannot exceed 40 percent of the parties’ combined net income when added to the payee’s net income.

In addition to the amount, the formula provides Illinois couples a duration for how long maintenance should last and varies depending on how long the couple’s marriage lasted. For example, if the marriage lasted 5 years, maintenance payments would last one year and two months. But if the couple has been married for 20 years, it may last 20 years or be permanent. There are also a wide variety of other permutations in between.

Take, for example, a 5-year marriage. The alimony duration formula in Illinois states that spousal maintenance typically lasts one to two years. Let’s say you have 1-year-old twins and you and your spouse decided that you would stay home with the children. While it’s certainly possible for you to return to work immediately after your divorce, it may not be realistic. It might make more sense to seek employment once the kids are in school full-time, which would be at least 4 years from now. How would you support yourself after alimony ended but before you had gainful employment?

On the other end of the spectrum, let’s say you’ve been married 25 years and are 60 years old. Per the formula, you’d have to pay maintenance until you’re 85. How would you be able to retire? Even if you gave your ex-spouse 50% of all retirement assets, per the formula, you wouldn’t be able to retire until you were 85 years old.

In both cases, the formula would be unusable because you’d still need to negotiate maintenance duration.

And just like determining an amount, duration is not so easy to agree on.

As if figuring out maintenance in Illinois wasn’t already a complicated endeavor, we’ve got yet one more factor to add to the conversation. And that’s the cost of living.

Say your marital home was in Lincoln Square, Chicago. And you’re the one paying alimony. And your spouse decides to move the kids to Northbrook, post-divorce. Better schools, and all… You might think that moving out of the city, and into the burbs, would represent significant savings. Guess again!

Northbrook is actually 32.2% more expensive to live in than Chicago! So, do you pay them based on what it cost to live in Lincoln Square? Or do you pay them based on what it will cost to live in Northbrook?

Good question…

When thinking of maintenance, most people think of the “check in the mail” approach, whereby one party would make alimony payments of a “regular amount” to the other party. The same way an employee would receive a “regular” paycheck. And while that’s the most common way to go, there are two other types of maintenance available to Illinois couples as you’ll soon find out. These types of maintenance may be used on their own or in combination with each other depending on the couple’s unique situation.

In addition, some people feel very strongly against having to write a check monthly to their ex. So there are also other, more creative ways to resolve this highly contentious subject. For example, divorcing couples will sometimes trade spousal support for equitable distribution. Or do an alimony buyout. Or pay alimony in one lump sum.

The point is there isn’t any such thing as “typical maintenance” payments.

And there are many different ways of settling this issue.

As you just learned, there are actually three different types of alimony Illinois couples can consider in their divorce. And they are:

1. Permanent or impermanent maintenance

As the title suggests, Illinois allows for the payment of maintenance until one of the parties dies. However, that doesn’t mean maintenance always continues indefinitely in permanent maintenance cases. Illinois divorce maintenance is still subject to termination events, such as the recipient’s remarriage.

Illinois divorce maintenance agreements can also contain other terminating events to be defined at the time of agreement thus making ‘permanent’ maintenance impermanent. For example, a caveat may be that permanent maintenance terminates upon the retirement of the spouse who is paying.

In our experience, individuals who receive permanent divorce maintenance awards are typically older, have been in long-term marriages, and/or limited earning capacity, perhaps due to limited formal education or staying home to raise children while their spouse furthered their career.

Illinois alimony agreements may also award permanent maintenance to individuals who have a medical condition that prevents them from being self-sufficient.

2. Maintenance in gross

This is maintenance is paid in one lump sum at the time of divorce, or relatively close to it, perhaps in a limited number of installments. While less common than other types of Illinois divorce maintenance, it can sometimes be used by specific individuals to, in effect, “pre-pay” their maintenance obligation to gain certain tax advantages. An arrangement in which maintenance in gross is used appears quite a bit like a property settlement that one might see during equitable distribution.

When considering this type of divorce maintenance, one must be cautious of the discount rate used for present value calculations and be cognizant of the impact of terminating events, or lack thereof.

3. Rehabilitative maintenance

The third type of divorce maintenance that Illinois allows for is rehabilitative maintenance, also known as “reviewable maintenance” or “periodic maintenance.” This type of maintenance may be paid for a short, fixed period of time or an indefinite one with periodic review. The idea of rehabilitative maintenance is to allow the recipient spouse some time to “get back on their feet” and enjoy on their own a similar post-marital lifestyle as the one enjoyed while married.

For those recipients of rehabilitative maintenance who have a college degree or the means by which to earn a comparable standard of living, the period of time for which it is offered is usually short and fixed. The idea is to give the recipient spouse both time and an incentive to become self-sufficient. Once the period of time is satisfied, the maintenance is terminated.

In cases where it’s unclear whether the recipient spouse will be able to become self-sufficient in a finite period of time, rehabilitative maintenance (also known as “reviewable maintenance”) is usually awarded for an open-ended period of time. In this case, the agreement would outline a review date and the parties would reconvene to determine if an extension of the maintenance is required. In limited cases, there are times when a fixed date is set and the burden to request an extension is placed upon the recipient.

It should be noted that the recipient party is required to make a good faith effort to become self-sufficient. If it is determined they did not, maintenance may be terminated immediately.

Since every couple’s situation is different, alimony is not a one-size-fits-all matter. Coming to an agreement that’s fair requires more than a wild guess or passing conversation for spouses. And as you’re starting to see, there’s a lot involved in this highly complex topic. Not only that but there are many places you can make expensive mistakes with far-reaching consequences.

The issue of divorce maintenance is much too complex and emotionally charged in most cases for you to attempt to determine on your own.

If you go the lawyer route, your divorce attorneys can drag out your negotiations for years.

Fighting in circles. Around and around. In a gray area where no one’s right. All while billing you their ridiculous hourly fees.

That is, until neither you nor your husband or wife has any money left to keep paying your legal fees. And there’s no money left for divorce maintenance! Just another reason it’s better to avoid involving lawyers in your divorce negotiations.

If alimony can’t be successfully resolved between you, your spouse, and your respective attorneys, your case will continue to litigation in court. But you need to understand something here: In a litigated divorce, a judge will decide how spousal support will be addressed. Yikes! That means the family law judge gets to dictate (on a case-by-case basis) the terms of your settlement in court and tell you what amount you’ll receive or have to pay.

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

That’s why it’s better to negotiate an amount and duration that both you and your husband or wife find fair. And negotiation is the cornerstone of divorce mediation. In mediation, you get to decide – and come to an agreement you both agree is fair, out of court – instead of letting a stranger decide your future.

Using our extensive financial knowledge of the complex matters of alimony and maintenance, we’ll discuss the different types of maintenance permitted in Illinois and help you determine which type(s) may be applicable in your particular situation. And explore the feasibility of using some combination of alimony types in conjunction with child support and equitable distribution, as all three topics are interconnected.

We’ll actively guide you through our comprehensive budgeting process, which reflects both your marital expenses and your projected expenses after divorce. So we can take a close look together at what each of you earns, spends, and will need to move forward.

And determine how, if at all, the division of your marital property, debts, and expenses related to your children will factor in when determining an amount and duration. We’ll then help you negotiate a maintenance arrangement that you both find fair and that will best allow you to fulfill your financial obligations after you’re divorced.

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

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