Summary of Tennessee Alimony Law

Alimony (sometimes referred to as spousal support or maintenance) is the court-ordered financial support of one spouse by the other spouse as part of a legal separation or a divorce.

In Tennessee, alimony can be granted by the court in cases of legal separation, dissolution of marriage, out of the spousal’s property or his or her income depending upon the nature of the cases and conditions of the parties.

The order for alimony can be modified or terminated if the circumstances have changed of either of the parties since the time of fixing the alimony amount. While determining the alimony amount, the court will also take into account the expenses that will be borne by the spouse to receive vocational training and employment after the divorce. It shall also take into account the financial needs of each spouse and ability of each spouse to fend for oneself financially.

There are four types of alimony that can be granted under the Tennessee Code such as rehabilitative alimony, alimony in futuro, also known as periodic alimony, transitional alimony, or alimony in solido, also known as lump sum alimony. The Court can grant a combination of these alimonies if the need arises.

Rehabilitative alimony will be granted when the spouse is found to be in extremely disadvantaged circumstances. The alimony amount will enable the disadvantaged spouse to find a suitable employment and to make the standard of living of such a spouse comparable to the standard of living that he or she lived during the marriage.

Alimony in futuro, also known as periodic alimony is awarded when the spouse is required to be partially rehabilitated and a complete rehabilitation is not feasible. This type of alimony can be granted in addition to the rehabilitative alimony.

When there is no requirement to rehabilitate the spouse and the spouse only requires some support to adjust to the economic consequences resulting out of a divorce, legal separation or any other such proceedings, then the court can award transitional alimony.

Alimony in solido may be awarded in lieu of or in addition to any other alimony award to provide support, including attorney fees, wherever appropriate.

Factors Affecting the Amount, Nature and Duration of Alimony in Tennessee

In determining whether to grant alimony, a court will consider all relevant factors to decide upon the nature, amount, kind and duration to pay alimony, they are as follows:

• • Earning capacity and financial resources of each spouse
• • Level of education and training acquired by each spouse, the ability to secure education or training and the necessity for the spouse to acquire education or training to improve his or her earning capacity to a certain level
• • Length of marriage
• • Age and mental condition of each spouse
• • Physical condition of each spouse
• • Whether its feasible for the spouse to get an employment if the spouse is given custody of the child
• • Separate assets of each spouse
• • Provisions made with respect to marital property
• • Standard of living enjoyed during marriage
• • Commission of faults by the spouse
• • Miscellaneous factors such as tax consequences to be borne by each spouse

Tax Consequences of Alimony

It is important to understand that there may be tax implications for individuals who pay or receive alimony. According to Section 71 of the Internal Revenue Code, alimony must be included in the recipient’s gross income and can be excluded from the payer’s gross income.

However, it is critical that payments actually qualify as alimony under the law. To qualify as alimony (also according to Section 71 of the Internal Revenue Code), payments must generally meet five conditions:

• (1) The payment is be a cash payment (such as a check or money order)
• (2) The payment is received by (or on behalf of) a spouse under a “divorce or separation instrument”
• (3) The divorce or separation instrument does not designate the payment as a payment which is not includible in gross cross income as alimony and not allowable as a deduction for the payee spouse (under Section 215 of the Internal Revenue Code).
• (4) The payer and payee are not members of the same household at the time payments are made
• (5) There is no liability to make payments after the death of the recipient spouse