Divorce is never just an ending, it’s also the start of the rest of your life. But depending on your specific circumstances, moving forward may require a little extra financial assistance in the form of spousal support payments.
Sometimes referred to as alimony, this is money that is paid by one former partner to another to help the recipient attain financial stability, or because it makes separating from each other easier.
These payments are often included in a divorce settlement in order to help a divorcee who could otherwise not afford to leave gain their post-divorce footing. But they can also be used as a tool for helping a couple equally apportion the value of complex or impossible to divide assets like businesses, real estate holdings, professional practices, and investments.
Attorney Bob Matteucci has years of experience representing both sides in spousal support cases. He works to negotiate fair agreements that set both spouses up for success in their post-divorce life.
What Is Spousal Support in New Mexico?
Spousal support, or alimony, is financial support paid by one former spouse to the other after divorce.
It was created back in the days when women were not welcome in the workforce, did not own many assets, and had significant difficulty supporting themselves and their children following a divorce. Alimony payments empowered women to leave bad marriages and gave them the resources needed to start fresh and maintain their dignity.
Today, both men and women may seek spousal support payments from their former partners. The goal of these payments is still to protect people who might otherwise be trapped in an unhappy marriage, or be unable to support themselves post-divorce. But it can also be used as a bargaining chip in situations where a couple’s jointly owned assets are difficult to divide 50/50 (which must be done under our state’s community property laws).
Whether you’re seeking spousal support or facing a request for it, it should be viewed as a tool that allows you and your former partner to part ways and move forward, not something that continues to tie you together.
Under New Mexico family law:
- Only legally married spouses may request spousal support. Cohabitating partners are not entitled to spousal support payments.
- Alimony is designed to provide financial stability, not to punish either spouse.
- Courts may consider a variety of financial and personal factors before awarding support.
- The type and amount of spousal support available varies from couple to couple.
- Spousal support is not paid in every divorce, but every former couple must consider whether it should be
Factors That Determine Alimony in New Mexico
Divorcing couples (and family court judges) must consider multiple factors when deciding whether spousal support is appropriate, including:
- Length of the marriage
- Age and health of both spouses
- Current and future earning ability
- Job training or education needs
- Childcare responsibilities
- Lifestyle maintained during the marriage
- Sacrifices one spouse made for the other’s career or business
- Contributions to a professional practice or business growth
- Assets, debts, and financial responsibilities of each spouse
For business owners and professionals, determining income and asset value can be complicated. And putting a dollar amount on the sacrifices a supportive spouse made for their high-earning partner may sound impossible. As a former business owner and divorcee himself, Attorney Bob Matteucci is deeply familiar with how challenging this can be.
Bob puts his lived experience, business sense, and understanding of New Mexico’s family court system to work to ensure alimony agreements reflect reality and meet the needs of each family he represents. To him, the agreement struck is about a lot more than numbers on a piece of paper.
Types of Spousal Support
As mentioned above, there are several types of spousal support in New Mexico:
Transitional Spousal Support
This is money intended to supplement the income of the receiving partner for a limited amount of time. Usually awarded for a year or less, transitional spousal support helps the recipient get established in his or her post-divorce life.
Rehabilitative Spousal Support
This form of spousal support helps the recipient get the education or job training he or she needs to be financially self-sufficient after the divorce. It is especially helpful if the spouse’s career was put on hold during the marriage.
Modifiable Spousal Support
This is money awarded to a spouse for an indefinite period. In many cases, it is paid until the receiving party remarries or dies, as well as when the paying party dies. However, it may increase, decrease or stop entirely depending on retirements or material and substantial changes in circumstances, such as changes to either person’s income or financial assets.
Non-Modifiable Spousal Support
This is money awarded to a spouse in set monthly payments for a definite period of time. During the period of time that non-modifiable spousal support is paid, if there is a substantial or material change in circumstances, (remarriage, increase or decrease in income, etc.), the monthly amount paid and the set number of months paid remains the same.
Lump-Sum Spousal Support
A one-time payment instead of ongoing monthly support, often used in high-asset divorce negotiations.
Whether you are the paying or receiving spouse, Attorney Bob Matteucci can explain your different options. He can also discuss ways you can use spousal support as something of a bargaining chip. Some people choose to take less alimony in exchange for a more advantageous division of the couple’s assets. Others would rather have the long-term security of support payments instead of assets.
In the end, your spousal support agreement needs to suit you and your former partner’s unique needs. You should not compare your agreement to the agreements struck by other couples since each couple’s relationship and life circumstances are different.
Alimony FAQs
How long do I have to be married to qualify for spousal support?
There is no minimum amount of time a couple has to be married for one spouse to be eligible for alimony payments. However, the longer a couple is married, the more likely it is that one of the former partners will receive alimony.
How long does alimony last?
This varies from couple to couple. As discussed above, different types of spousal support payments are made at different times. Sometimes it is all paid up front. Sometimes it lasts until the paying spouse passes away, or the recipient remarries. The paying spouse can be required to carry life insurance to ensure their obligation to pay is met even after death.
Do high-asset divorces usually involve spousal support?
Not always. Support depends on the couple’s unique financial and personal circumstances. Many wealthy couples find alimony to be unnecessary once the value of their joint assets are split 50/50 as required under New Mexico’s community property laws.
How is alimony calculated when one spouse owns a business?
It’s a little bit tricker when the paying spouse is not a W2 employee, but Attorney Bob Matteucci’s business background means he is able to dig into a couple’s financial documents and figure out what a reasonable number is.
Can alimony be changed later?
Modifiable alimony can be adjusted if circumstances significantly change. Non-modifiable alimony cannot.
What if my spouse is hiding income or assets?
If you suspect your spouse is hiding income or assets, or intentionally making poor financial decisions, there are steps Attorney Matteucci can take to protect your interests. This might mean bringing in a forensic accountant who can help uncover hidden income, investments, or real estate.
My spouse cheated on me. Does that mean I get alimony?
It’s frustrating that happened to you, but the answer is no. New Mexico is a no-fault divorce state. So, alimony is based on financial need, not misconduct. It is not meant to serve as a punishment.
What happens to alimony if the paying spouse retires?
Retirement may justify modifying alimony, just like any other significant change in circumstances. A judge can decide if a change is warranted.
Are Alimony Payments Taxable?
Under current tax law, alimony is not deductible for the payer and is not taxable income for the recipient. To prevent people from using this as a way to avoid taxes, the IRS will only consider a payment to be alimony if:
- You don’t file a joint tax return with your former spouse.
- You make alimony payments in cash, by check, or by money order.
- You make payments to or for a spouse or former spouse under an applicable divorce or legal separation agreement.
- Legally separated spouses cannot be part of the same household when making payments.
- Liability for the payment doesn’t extend beyond the death of the spouse who receives payments.
- The payment is not child support or a property settlement.
Can spousal support be negotiated outside of court?
Yes. Most couples in the Albuquerque area, especially professionals and business owners, prefer to negotiate an agreement to protect their privacy. New Mexico family court judges encourage this because they do not like to wade into disagreements over alimony payments.
Finding Middle Ground
Most couples understand that support payments are simply part of the deal if you want to finalize your divorce and move on with your separate lives. Keeping this in mind makes coming to an agreement much easier.
If you and your former partner already know how you want to handle spousal support, Attorney Bob Matteucci can help you draft a spousal support agreement as part of your Marital Settlement Agreement, and file it with the court.
If you need help coming to an agreement over alimony, mediation may be a good option. During mediation, which is confidential, a neutral party comes in to assist. The mediator helps you negotiate a fair settlement by facilitating open and honest conversation and highlighting the key areas of the agreement that you can build a solution on.
Attorney Bob Matteucci is frequently called up to mediate for couples who have complex finances — like business owners, professionals, artists, and entrepreneurs. He puts his MBA degree and business background to work to help the parties reach a fair and balanced resolution.
Serving Families with Dignity & Compassion
Spousal support decisions can have long-term financial consequences — especially for business owners, professionals, and couples with substantial assets. Attorney Bob Matteucci understands both the legal and financial complexities of high-asset divorce in New Mexico, and is ready to help you strike an agreement over alimony that is tailored to match your life circumstances.