How is Alimony calculated in Utah?

In most cases, it is incumbent upon the district court to determine the amount necessary to maintain the standard of living established over the course of the marriage rather than just the amount that is actually being spent at the time of trial. 

See Rule v. Rule, 2017 UT App 137, ¶ 22. , 312 P.3d 939; 

A trial court is obligated to assess the receiving spouse’s needs in light of the parties’ marital standard of living.

Utah Family Law

Monthly living expenses of the spouse seeking alimony - the potential alimony payee

(this means the monthly expenses regularly incurred during the marriage, not a wish list, not an artificially inflated amount).

  • Be sure to factor into “monthly living expenses” the annualized monthly average for expenses actually incurred each month, such as automobile repair and maintenance, automobile replacement, vacations, frequency of dining out, etc.
  • To determine your monthly living expenses, use the Utah courts’ official Financial Declaration form, paragraph 7, to calculate the amount:

Monthly living expenses of the spouse from whom alimony is sought - the potential alimony payor

 (this means the monthly expenses regularly incurred during the marriage, not a wish list, not an artificially inflated amount).

  • Be sure to factor into “monthly living expenses” the annualized monthly average for expenses not actually incurred each month, such as automobile repair and maintenance, automobile replacement, vacations, frequency of dining out, etc.
  • To determine your monthly living expenses, use the Utah courts’ official Financial Declaration form, paragraph 7, to calculate the amount:

Monthly net, after tax, income of the spouse seeking alimony - the potential alimony payee

(the real amount, not an artificially high or low amount).

Monthly net, after tax, income of the spouse from whom alimony is sought - the potential alimony payor

(the real amount, not an artificially high or low amount).

  • There is no statutory provision for imputing income to a potential alimony payor, but it’s safe to say that the court could and likely would imputer an income to the potential payor if he/she is capable of earning an income, but is unemployed or underemployed.
  •  If the amount of the potential alimony payee’s net, after tax income (real or reasonably imputed) exceeds the amount of his/her monthly living expenses, then now alimony will likely be awarded. 

Determining whether alimony can be awarded.

If the potential alimony payee’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed), then, whether the potential payor’s income, after meeting his/her monthly needs, is sufficient to make up some or all of the shortfall between the potential payee’s needs and income. Thus, no alimony will be awarded.

  •  If:
    • the potential alimony payee’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed);
    • the potential payor’s income, after meeting his/her monthly needs, exceeds his/her monthly living expenses; and
    • the surplus is sufficient to cover all of the shortfall between the potential payee’s needs and income, then the limits of the amount of alimony to be paid each month is limited to that amount.
  • If:
    • the potential alimony payee’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed); and
    • the potential alimony payor’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed); then
    • “[o]once the court has determined that there are insufficient resources to meet the baseline needs established by the marital living standard, the court should then equitably allocate the burden of the shortfall between the parties. See Rule v. Rule, 2017 UT App 137 at ¶ 22.
      • The court should undertake the last step “with an eye towards equalizing the parties’ standards of living only if there is not enough combined ability to maintain both parties at the standard of living they enjoyed during the marriage.” Batty v. Batty, 2006 UT App 506, ¶ 5, 153 P.3d 827. In other words,
        • Income equalization, as imposed by the courts in divorce proceedings, is perhaps better described as ‘equalization of poverty.’ … [C]ourts will equalize the incomes of the parties only in those situations in which one party does not earn enough to cover his or her demonstrated needs and the other party does not have the ability to pay enough to cover those needs.
(Dobson v. Dobson, 2012 UT App 373 at ¶ 22)
 
Equalizing the parties’ standards of living/equalizing poverty involves the following calculation:
 

Potential payee’s shortfall + Potential payor’s shortfall

(Sum of potential payee’s shortfall and potential payor’s shortfall) ÷ 2 = amount of “equalization of living/equalizing poverty awarded.

Calculating alimony is not purely a matter of a mathematical formula, This calculation is for informational purposes only and is merely an illustration, but this explanation should give you a  grounding in the basics of alimony analysis and calculation. This alimony calculator provides an estimate based on general guidelines. Actual alimony payments can vary based on specific circumstances of each individual case. 

Determining whether alimony can be awarded.

  • If the potential alimony payee’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed), then, whether the potential payor’s income, after meeting his/her monthly needs, is sufficient to make up some or all of the shortfall between the potential payee’s needs and income. Thus, no alimony will be awarded.
  •  If:
    • the potential alimony payee’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed);
    • the potential payor’s income, after meeting his/her monthly needs, exceeds his/her monthly living expenses; and
    • the surplus is sufficient to cover all of the shortfall between the potential payee’s needs and income, then the limits of the amount of alimony to be paid each month is limited to that amount.
  • If:
    • the potential alimony payee’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed); and
    • the potential alimony payor’s monthly living expenses exceed his/her net, after tax income (real or reasonably imputed); then
    • “[o]once the court has determined that there are insufficient resources to meet the baseline needs established by the marital living standard, the court should then equitably allocate the burden of the shortfall between the parties. See Rule v. Rule, 2017 UT App 137 at ¶ 22.
      • The court should undertake the last step “with an eye towards equalizing the parties’ standards of living only if there is not enough combined ability to maintain both parties at the standard of living they enjoyed during the marriage.” Batty v. Batty, 2006 UT App 506, ¶ 5, 153 P.3d 827. In other words,
        • Income equalization, as imposed by the courts in divorce proceedings, is perhaps better described as ‘equalization of poverty.’ … [C]ourts will equalize the incomes of the parties only in those situations in which one party does not earn enough to cover his or her demonstrated needs and the other party does not have the ability to pay enough to cover those needs.
 
(Dobson v. Dobson, 2012 UT App 373 at ¶ 22)
 
Equalizing the parties’ standards of living/equalizing poverty involves the following calculation:
 

Potential payee’s shortfall + Potential payor’s shortfall

(Sum of potential payee’s shortfall and potential payor’s shortfall) ÷ 2 = amount of “equalization of living/equalizing poverty awarded.

Calculating alimony is not purely a matter of a mathematical formula, This calculation is for informational purposes only and is merely an illustration, but this explanation should give you a  grounding in the basics of alimony analysis and calculation. This alimony calculator provides an estimate based on general guidelines. Actual alimony payments can vary based on specific circumstances of each individual case.