[co-author: Meghan Trentz - Summer Associate]
Under Iowa law, alimony, also known as spousal support, refers to the financial help provided by one spouse to the other following a divorce or separation. It addresses the economic disparity that can arise when one spouse has a significantly lower income or financial resources compared to the other. Alimony ensures both spouses can maintain a reasonable standard of living after a divorce or separation.
In Iowa, alimony is determined based on various factors, including the length of the marriage, contributions made by each party during their union, each person’s earning capacity, their respective financial needs, and the standard of living established during the marriage. Four types of alimony are available to spouses:
- Traditional
- Reimbursement
- Rehabilitative
- Transitional
Traditional
Traditional alimony is “payable for life or so long as a spouse is incapable of self-support.” This type of alimony is usually awarded when there is a physical disability or advanced age coupled with a lack of education or job skills that prevent a spouse from earning a comfortable living. In the case Marriage of Gust, the court stated, “our case law demonstrates duration of the marriage is an important factor for an award of traditional spousal support … (which) … is often used in long term marriages where life patterns have been largely set and the ‘earning potential of both spouses can be predicted with some reliability.’”
Traditional alimony is also more commonly awarded when, while married, the parties agreed that one spouse would stay home to raise the children. After divorce, the economic consequences of the absence from the workforce can be substantial.
A “Need and Ability” evaluation will focus on earning capacity of the spouses, and whether there is a significant disparity in the earning capacity, not necessarily income levels. Generally, a marriage of 20 years or longer is considered the threshold duration for traditional alimony.
Reimbursement
Unlike traditional alimony, which is typically provided to maintain a standard of living, reimbursement alimony applies to scenarios where one spouse supported another in an endeavor which would lead to future earning capacity by the supported spouse. One Iowa court case defined reimbursement alimony as “predicated upon economic sacrifices made by one spouse that directly enhance the future earning capacity of the other spouse.”
In Iowa, the amount and duration of reimbursement alimony are determined based on various factors, including the length of the marriage, the financial needs of both parties, and the economic impact of the educational or career advancement received by the supported spouse. Ordinarily, reimbursement alimony is of limited duration until full payment is made. This type of alimony usually is not subject to modification or termination until full compensation is achieved, because of the personal nature of the award and the tax laws.
Rehabilitative
The third type of alimony is rehabilitative. The court has previously indicated that it’s intended to support an “economically dependent spouse through a limited period of re-education or retraining following divorce, thereby creating incentive and opportunity for that spouse to be self-supporting.”
A large disparity in income and one party's extended absence from the workforce are reasons to award rehabilitative alimony. This alimony provides temporary assistance and supports the recipient spouse’s efforts to become economically self-reliant. The court may review the progress of the rehabilitative plan periodically to assess the need for continued financial support. This means that sometimes the financial support is limited to a certain timeframe or extended past, it depends on the needs of the economically dependent spouse.
Transitional
The final type of alimony in Iowa is transitional alimony which was recognized in 2022. This type of award is usually appropriate when a spouse has surrendered economic opportunities and needs time to get retooled to enter the workforce. This type of alimony stems from needing a type of support whereby the recipient spouse may already have the capacity to self-support at the time of the dissolution but needs short-term assistance to transition from married status to single status due to the economic and situational consequences of dissolution.
Transitional alimony helps cover the costs of relocation, job training, and/or reestablishing a household. The critical consideration with this award is whether the recipient party has enough income and/or liquid assets to transition from married life to single life without undue hardship. Transitional alimony is temporary and designed to aid during the transitional phase following the divorce.
