Show Me The Money: Understanding Modern Alimony
In this episode of How to Split a Toaster, divorce attorney Seth Nelson and Pete Wright dive into the complex world of alimony. As part of their comprehensive P.E.A.C.E. Process mini-series, they break down what alimony really means today, who might be eligible, and how courts determine payments.
Over the course of the episode, Seth and Pete demystify how alimony actually works. They explore everything from basic calculations to lifestyle considerations, debunk common misconceptions about savings components, and explain why "need and ability to pay" matters more than simple income differences. The discussion covers various types of alimony payments, from short-term support during transitions to longer-term arrangements, and explains how courts look at the whole financial picture.
Questions we answer in this episode:
• How do courts calculate alimony payments?
• What expenses can be included in alimony calculations?
• Can I modify my alimony after divorce?
Key Takeaways:
• Alimony is based on need and ability to pay, not just income differences
• Don't forget to factor in new expenses like health insurance and HOA dues
• Consider lump sum payments to avoid ongoing financial entanglement
Plus, we tackle several listener questions! From high-income scenarios to job loss situations, Seth explains how courts handle various real-world alimony challenges and what rights both parties have when circumstances change.
Whether you're facing divorce or just want to understand how modern alimony works, this episode provides essential insights into one of divorce's most misunderstood aspects. Seth and Pete's practical approach makes complex financial concepts accessible while offering strategies to protect yourself financially during and after divorce.
Links & Notes
- (00:00) - Welcome to How to Split a Toaster
(02:00) - PEACE: Alimony
(03:54) - Quiz Time
(07:32) - Starting Point
(09:11) - Understanding Where the Money’s Going
(13:21) - Forensic Accounting
(14:23) - Unanticipated Income
(17:29) - Ability to Pay
(20:48) - Changes in Alimony
(23:00) - Ways to Save in Fees
(29:46) - Listener Questions
(35:02) - Wrap Up
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