How is Spousal Support Calculated?

The main purpose of spousal support, also known as alimony, is to provide “post-divorce” financial support to a spouse who has a need.  Alimony attempts to equalize the income differences of spouses when there is an economic need, or when the standard of living would decline for our spouse after the divorce.

Alimony is distinct from child support. While child support covers expenses related to children (like childcare or extracurriculars), alimony provides funds for the receiving spouse because of need or economic loss.

The common example of when spousal support is warranted is when, during the marriage, the husband works as a successful professional, and the wife is a homemaker. A court will award monthly alimony to ensure a portion of the income earned by the husband, is awarded to the wife to compensate her for her work to support him during the marriage.

What is Alimony?

At the most basic level, spousal support is a monthly payment from one ex-spouse to the other ex-spouse. The purpose of spousal support is NOT to help with childcare expenses, extracurricular activities, or other expenses related to children. That is what child support does.  Alimony is simply intended to equalize available funds, for whatever spending purpose the receiving spouse desires, in cases where one spouse had a higher income during the marriage.

The courts rely mainly on monthly income to decide on spousal support. To calculate your monthly income, the court will use your financial disclosure form. Your financial disclosure form (FDF) provides the court with a general idea of your monthly income, your monthly deductions, and your monthly expenses.

Temporary Spousal Support is Not Alimony

Temporary spousal support is often thought of as alimony, but it is not.  Temporary support is money a judge will order one spouse to pay the other spouse while the divorce proceedings are happening.

It is extremely common for the “significant” earning spouse to control their spouse’s access to their income after the divorce has started.   They may exert this control by closing credit cards, canceling debit cards, and depositing their income in a bank account their spouse does not have access to.

One example where temporary support may be awarded is when a spouse who was forced to move out of the marital home, does not earn enough to pay for rent, utilities, insurance, etc.. Temporary alimony may be awarded for a limited time with the purpose of allowing the recipient spouse to successfully separate from their former partner without too much complication.

How is a Temporary Support Award Decided?

The Nevada Supreme Court in Engebretson v. Engebretson established that “the right to temporary alimony rests largely in the discretion of the courts.” Importantly, the court clarified that temporary alimony awards are not limited to cases where the requesting spouse is destitute or practically so, but rather are appropriate “when facts, circumstances, and situations of parties are such that, in fairness to wife, she should be given financial assistance for her support during pendency of action.”

In Engebretson, the Nevada Supreme Court upheld a temporary alimony award to a wife who had no income sufficient for her support while her husband controlled all income-producing community property, even though the wife had separate property that could have been used for her support. This demonstrates that courts focus on the practical financial realities and income disparities between spouses rather than requiring exhaustion of all possible resources.

What are the Different Types of Spousal Support?

There are types of spousal support ordered in Nevada; monthly alimony and rehabilitative alimony.   Monthly alimony is known as traditional alimony and is to help with economic differences.   Rehabilitative alimony is to help a spouse learn a skill, trade, or profession.  It is designed to help the recipient spouse become financially independent.

What is Monthly Alimony?

Traditional alimony is to assist spouses of a long-term marriage, where temporary alimony is not sufficient, and rehabilitative alimony is not appropriate. The courts will consider an award of alimony in those marriages of 10 years and more and where the recipient spouse’s age or health is a relevant factor. Alimony in Nevada is authorized and governed by NRS 125.150(1)(a) and (9).

The most typical example of alimony is the traditional situation where the husband worked, and the wife stayed at home raising the children for a 30-year marriage. The couple is now in their 60’s looking for a divorce. Wife has limited ability to re-enter the workforce and provided significant in-kind support to husband as a homemaker for 30 years, allowing him to achieve his career goals.

When is Alimony Just and Equitable?

Nevada law simply says alimony should be awarded when it is “just and equitable”.   Most judges saw this as being when there was economic need.   Then in 2019, in the Kogod v. Cioffi-Kogod case, Nevada courts took steps towards defining other situations where alimony was “just and equitable”.

In the Kogod case the court held that income differences alone are not sufficient to award alimony.   The requesting spouse must show either an economic need for alimony, an economic loss occurred to them during the marriage or show their standard of living  during the marriage cannot be maintained after the marriage.  The court laid out three situations alimony would be just and equitable.

Economic Need – The judge is going to look at if the recipient spouse has an economic need. In other words, now that the divorce is over, the recipient spouse earns enough money each month to pay their bills.  If the answer is no, and the other spouse has the economic means to help financially, then alimony is just and equitable.

Standard of Living – Even if the recipient spouse doesn’t have a negative cash flow each month, the judge may look at what the standard of living was during marriage and compare it to what it will be after the divorce.   If the receiving spouse cannot maintain a lifestyle close to the lifestyle enjoyed during the marriage, and the other spouse can maintain this lifestyle, then alimony is just and equitable.

Economic Loss – The judge may award alimony to compensate a spouse for an economic loss during marriage.  For example, the wife stopped her nursing career for 10 years to stay home with the children.  During those 10 years the husband was able to continue climbing the corporate ladder and now earns three times his wife.  The wife is working, but she suffered an economic loss during the marriage because she lost 10 years in her career.  Even if there is not an economic need, and not change in their standard of living, alimony is just and equitable if there was an economic loss.

What Factors are Considered in Awarding Alimony?

“Just and equitable” is the goal of alimony imposed on the judge.  Economic need, economic loss, and maintaining the standard of living are three situations the judge will look for.  To decide if alimony in this situation would be just and equitable, or whether one of the three situations exists, the judge will look at factors.  In NRS 125.150 (the law regarding alimony) the judge is will review this list of factors;

• The duration of the marriage
• The nature and value of the property of each spouse
• The financial condition of each spouse
• The income, earning capacity, age and health of each spouse
• The standard of living during the marriage
• The career before the marriage of the spouse who would receive the alimony
• The existence of specialized education or training attained by each spouse during the marriage
• The contribution of either spouse as a homemaker

How is Monthly Alimony Calculated in Nevada?

The Nevada Legislature has never authorized an absolute formula to calculate how much alimony to order. The laws simply state alimony should be “just and equitable.”

In 1997, the Family Law Section of Nevada State Bar worked on a formula. After some mathematical testing and a lengthy debate, they came up with the “Tonopah Formula.” The formula was scheduled to be voted on by the next Nevada legislature session. However, it was never officially put on the agenda, so twenty years later, Nevada still does not have a formula.

The amount of monthly alimony to be paid, and the number of months to be paid is decided by a judge.   The judge reviews the spouses Financial Disclosure Form (FDF),  reviews tax returns, and listens to spouse testimony to decide if alimony would be just and equitable.

If the judge decides alimony is based on an economic need, then the judge is going to focus on income and expenses.  The judge will look at their gross monthly incomes, their mandatory tax deductions, and their reasonably monthly expenses.   These numbers will determine if there is an economic need and whether the paying spouse has the ability to pay alimony.   We created a Kogod Alimony Calculator to help with these calculations.