Postby coscrewed » Mon Jun 04, 2012 2:58 pm
The AAML alimony calculation was written up by a committee of man-haters, including representatives from NOW.
The AAML formula is (30% of the higher earner's gross) - (20% of the lower earner's gross), with a limit that the recipient's total income cannot exceed 40% of the combined incomes of the two parties. That last limit is key, and is often shoved under the rug. The other thing is that your wife's lawyer will try to make your wife's gross $0 if she is a SAHM, while the formula ASSUMES that at least minimum wage is imputed.
So, to recap, make sure they use the 40% limit, and make sure they impute income.
Now, do you want to hear what Colorado does?
The formula used here is (40% of the higher earner's gross) - (50% of the lower earner's gross), with NO LIMIT on the recipients total income. So, for example, let's say you make $100K and your wife makes $30K. Under AAML, the alimony would be ($30K-$6K)=$24K. Under Colorado, the alimony would be ($40K-$15K)= $25K. Pretty close, right?
Try this one: $150K vs $40K.
AAML: ($45K-$8K)-$37K.
Colorado: ($60K-$20K)=$40K. Still pretty close, right?
Now look at this screw job:
$175K vs. imputed minimum or about $16K
AAML: ($52.5-$3.2) = $49.3K
Colorado: ($70-$8) = $62K
It gets worse and worse. Colorado has the highest alimony awards in the country, for the longest periods of time, with the fewest requirements on the recipient, hands down. It is the alimony hell of the US, and therefore, the world. Not that you should care, OP.
Another dispatch from Alimonyrado.