In October 2013, The Denver Post reported that groundbreaking legislation was passed regarding a maintenance formula for the state of Colorado, and we feel this will drastically change what some ex-spouses are paying their former partners. Part of a national alimony reform movement, the new legislation (which has been passed in other states already) seeks to “either limit or standardize spousal maintenance payments.”
According to the new legislation, maintenance payments will be calculated as follows: “Calculate support by taking 40 percent of the higher income earner’s monthly income and subtracting 50 percent of the lower earner’s monthly income.” This new legislation was passed in the hopes of reducing the lack of consistency in maintenance orders, making it easier to predict a financial outcome for the divorcing spouses and harder to modify alimony after the fact. However, other factors, including the amount of marital property owned, whether there are children involved, and how long the marriage lasted will also be considered in determining support payments.
The legislation went into effect for divorces filed on or after January 1, 2014 and helps to “calculate the amount and duration of maintenance orders for marriages of three to 20 years in length, where the annual combined income does not exceed $240,000,” according to the article inThe Denver Post.