The court decides the amount of alimony/maintenance which is too be paid by the respective spouse after examining various parameters.
The income of the spouses, their standard of living and financial status are the factors considered. Both spouse’s income, investments and net worth, as well as the financial needs of the individuals are taken into account. “Though there isn’t a fixed formula to quantify the amount, generally it is in the range of one fifth to one third of the gross earnings of the spouse who has to pay alimony,” says Deshmukh.
The number of years the couple has been married, the number of children and the kind of emotional investment made are also considered. The husband can request stopping of payment or reducing the amount, if the wife manages to get another source of income.
While choosing the mode of payment, the lump sum is a preferred option. Lump sum gives certainty. A regular fixed pay out can stop after a while due to reasons like the supporting spouse losing his or her source of income or death. “The lump sum amount is not taxable as you get it as capital receipt.