February 14th, 2015

Spousal Support in Oregon–is there a new 20% rule of thumb?

There are no spousal support guidelines.  If your divorce case ends up in Court, Judges are all a little different.  Spousal support can vary in a wide range based upon the Judge you get.  In the past few years attorneys have been trying out this 20% rule of thumb since the new Trump tax changes.  How did the Trump tax bill change spousal support? Spousal support is no longer deductible by the paying spouse and the receiving spouse no longer has to pay income taxes on the amount received.

The Math

In order to calculate a rough estimate of the right amount of spousal support, you take the higher gross monthly income less the lower gross monthly income (if the second spouse is working) times 20%  For instance, If one spouse earns $200,000 and the second spouse does not work, 20% of $200,000 would be $40,000 or $3,333 in spousal support a month.

What it all means

I have had a Judge award below 20% in Court and I have had a Judge award above 20%. Having appeared in front of many different Judges, I have an idea of what might happen depending on the Judge. But, I never know for sure.  I try to settle all of my cases first, before going to trial.  The 20% gives me a rough idea of the right range for spousal support.  In settlement negotiations, I don’t want to go too far below or above that percentage, but I don’t have to stick with the exact 20%.  Every case is different, there are different needs and abilities for the person receiving spousal support.  He or she may feel comfortable taking a little less than 20% or may have a reason to insist on more. It depends on the circumstances of each individual and family.

 

Share Post On:

SCHEDULE A CONSULTATION

Fill out the form bellow and we will contact you!

Related Articles

October 11th, 2023

Of the different issues in a divorce or family law case, none seems to be more personal…

Multnomah County Divorce Attorney

January 19th, 2016

Divorce Mediation is the way to go. So many divorcing couples are now opting to go through…

Property Division | Portland Oregon Divorce

March 29th, 2017

Beaverton, Oregon family lawyer and mediator on divorce, Laura Schantz, was interviewed by Divorce Magazine and asked…