Divorce is a big transition in the lives of many people. So is retirement. A significant number of people entering retirement have to deal with divorce-related financial obligations, including alimony. Whether you are the spouse who’s receiving alimony or the spouse who’s retiring, a knowledgeable Maryland divorce lawyer can help you best protect yourself and your financial needs.
K.R. was one of these retiring Marylanders. He and his wife divorced in 2014 after 39 years of marriage. The spouses worked out a property settlement agreement. With regard to alimony, the agreement said that the husband would pay the wife $10,000 per month. It also said that the alimony obligation would reduce to “36.36% of the husband’s earned income” starting in 2019… unless the alimony obligation was “otherwise terminated or modified by a court.”
In 2020, the husband went back to court to extinguish his alimony obligation. He argued in his motion that he’d retired due to the COVID-19 pandemic and no longer earned any income. The court concluded that, although the husband had no income, he had over $1 million in assets, and refused to terminate alimony, but did reduce the sum from $10,000 per month to $4,000 per month.