Enactment of the “Alimony Reform Act”
The “Alimony Reform Act” of Massachusetts (G. L. c. 208, §§ 48- 55) was enacted in 2012 and dramatically altered the spousal support/alimony landscape. Thirteen years later, it is important to consider how the Alimony Reform Act has been interpreted and applied both to alimony orders existing prior to March 1, 2012, and to alimony orders entered after enactment.
Setting Alimony in Context of Divorce
”Alimony” is defined as the payment of support from a spouse, who has the ability to pay, to a spouse in need of support, as ordered by the Court.
Types of Alimony
There are still four types of alimony that may be awarded in a pending divorce case:
- General Term
- Rehabilitative
- Reimbursement
- Transitional Alimony
In determining which type of alimony to award, the Court may consider:
- length of marriage;
- age, health, and income of the parties;
- employment and employability;
- economic and non-economic contributions to marriage;
- marital lifestyle;
- ability of each party to maintain the marital lifestyle after
- divorce; and
- lost economic opportunity as a result of the marriage.
If you are considering filing for divorce, the timing may impact the type and duration of an alimony award. The length of a marriage is defined as from the date of marriage to the date of service of a complaint for divorce. However, post-reform cases provide the Court with discretion to extend the duration of the marital partnership for the purposes of calculating the duration of the marriage. Or, in other words, if a party can show a premarital economic partnership, the length of marriage may be extended.
General Term Alimony is awarded to a spouse unable to financially support him or herself. It is paid according to the following durational limits:
| Length of Marriage | Potential Duration of Alimony |
| 5 years or less | No greater than 50% of the length of marriage |
| More than 5 years, up to 10 years | No greater than 60% of the length of marriage |
| More than 10 years, up to 15 years | No greater than 70% of the length of marriage |
| More than 15 years, up to 20 years | No greater than 80% of the length of marriage |
| Greater than 20 years | Possibly indefinite |
In alimony awards entered on or after March 1, 2012, general term alimony may be suspended, reduced, or terminated if the payor spouse demonstrates that the recipient spouse has maintained a “common household” with another for a period of at least three months. Alimony will terminate if the recipient spouse remarries, or either party dies. General Term Alimony may also terminate upon the payor attaining full retirement age.
Rehabilitative Alimony is awarded to a former spouse who is expected to become economically self-sufficient within a set period of time not longer than five years. However, it may be extended if unforeseen events prevent the recipient spouse from becoming self-sufficient, notwithstanding his or her efforts. Rehabilitative alimony also terminates upon the remarriage of the recipient.
Reimbursement Alimony is an unmodifiable amount of money awarded to a spouse after a marriage that lasted not more than five years. The purpose of reimbursement alimony is to compensate a spouse for his or her contributions to the marriage, such as enabling the payor to complete education or training. It allows the recipient to complete education or employment training. Payment may be made in one lump sum, or periodically, and is terminable only upon the death of the recipient spouse.
Transitional Alimony is awarded in a marriage lasting not more than five years. The purpose of transitional alimony is to assist the recipient spouse with adjusting his or her lifestyle or location after a divorce. Transitional alimony terminates no more than three years after the parties’ divorce. It is not modifiable, extendable, and may not be replaced by a different form of alimony after the term.
Amount of Alimony and Incomes of the Parties
When the Alimony Reform Act was enacted, the payor deducted the amount of alimony paid from his/her income, and the recipient spouse was required to report alimony received as taxable income. However, under the Tax Cuts and Jobs Act of 2017, alimony payments are no longer deductible to the payor. Nor are they included as taxable income to the payee on Federal Income Tax Returns. To account for this change, the requirement that an alimony award not exceed the needs of the recipient (or 30% – 35% of the difference between the gross incomes of the parties) has been reduced to approximately 22% to 28% of the differences in the parties’ incomes. These income parameters do not apply to cases where Reimbursement Alimony is awarded, or where there are other circumstances warranting a deviation.
In determining income, the Court still excludes capital gain income and dividend and interest income earned from assets divided by the parties in the divorce. Concurrent payment of child support is also taken into consideration.
Modification of Alimony Orders Entered Before March 1, 2012
Since the enactment of the Alimony Reform Act, the Supreme Judicial Court has clarified which alimony judgments entered prior to March 1, 2012 may be subject to modification. Pre-reform alimony judgments may be modified where the durational limits extend beyond the post-reform durational limits for General Term Alimony. But the retirement and cohabitation provisions, alone, provide no basis to terminate alimony judgments entered prior to March 1, 2012.
Payment of Alimony and Child Support
The Alimony Reform Act takes into account payment of child support that may be paid prior to entry of an alimony order. After child support has ended, the combined duration of payment of child support through emancipation of the children and alimony should not exceed the longer of the alimony duration available at divorce, or up to five years with payment of Rehabilitative Alimony.
Security for Payment
The Court may order the payor to obtain life insurance or another form of security, naming the recipient as beneficiary, during the term of payment. This obligation is modifiable.
Conclusion
Since its enactment in 2012, the Alimony Reform Act has had drastic implications for alimony awards. As is typical, court decisions since that time have continued to define the law in practice. While the Act has greatest implications for judgments entered after March 1, 2012, even pre-reform judgments may be subject to modification if they exceed the durational limits set forth in the Alimony Reform Act.
Laurel Koes is a Family Law Attorney and Partner at the Boston-based law firm Conn Kavanaugh Rosenthal Peisch & Ford, LLP.
She can be reached at lkoes@connkavanaugh.com
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