Minnesota Alimony Calculator

Several states have set formulas for calculating alimony or spousal maintenance.  Minnesota, however, is not one of them.

In Minnesota, spousal maintenance is calculated by balancing an obligor’s ability to pay versus the reasonable needs of the obligee.  Additionally, courts will analyze statutory spousal maintenance factors which include but are not limited to the standard of living established during the marriage, the age/physical/emotional condition of the spousal maintenance obligee, the lost employment opportunities of the obligee, and the financial resources of the obligee.

In many cases, financial experts will prepare cash flow analysis which identifies the tax ramifications for a theoretical spousal maintenance award.  These calculations take into the taxable nature of spousal maintenance to the obligee and the tax deductibility of spousal maintenance to the obligor.  Please note that under Trump’s new tax plan, spousal maintenance awards entered on or after January 1, 2019 will no longer be tax deductible to the obligor or taxable as income to the obligee.  My Law Partner, Beth Barbosa, wrote a detailed article which was featured in the Minneapolis Star Tribune regarding the elimination of the spousal maintenance deduction.

The cash flow analysis will also take into significant deductions such as mortgage interest and real estate taxes as well as child dependency exemptions.  The cash flow is typically prepared to identify the amount of spousal maintenance needed to satisfy a specific budget or to otherwise equalize the net after tax cash flow of the parties.

Spousal Maintenance Calculators in Other States

New York, for example, has a set alimony calculator.  New York has two formulas in which courts will adopt an alimony award based upon the lower of the two formulas.  The formulas are as follows:

Formula 1: 20% of the obligee’s income minus 30% of the obligor’s income.

Formula 2: (The total income of both parties multiplied by 40%) minus the obligor spouse’s income.

Calculating Spousal Maintenance in Minnesota

In Minnesota, calculating spousal maintenance is not an exact science.  It is a grey area and each case may turn depending on the particular facts of the case.  Additionally, courts have broad discretion is determining the amount and duration of a spousal maintenance award.  While one judge may believe a permanent spousal maintenance award should be awarded, another may believe a spousal maintenance award is unwarranted even under the same set of facts.  Accordingly, it is critically important to retain an experienced attorney to make your best case regarding a potential spousal maintenance award or obligation.  Please contact us for a free consultation, 612-564-3622.