Family & Divorce Law Services

I. THE IMPORTANCE OF IDENTIFYING SPENDING HABITS

Spending habits, although not specifically enumerated by statute, is one of the considerations the court reviews for spousal support and it is generally encompassed under Standard of Living (factor 8), Marital Misconduct (factor 1) or the catchall "any other factor" (factor 15). Spending habits then are just one of the factors considered by the court when determining alimony and post separation support since the court has discretion when weighing all the factors, including the catchall category for alimony (factor 15).

Recent Case Law

Excessive spending habits can be grounds for marital misconduct due to reckless spending.  "N.C. Gen.Stat § 50-16.3A(b)(1) provides that [n]othing herein shall prevent a court from considering incidents of post date-of-separation marital misconduct as corroborating evidence supporting other evidence that marital misconduct occurred during the marriage and prior to date of separation."  Glass v. Glass 131 N.C.App. 784, 791, 509 W.E. 2d 236, 240 (2000).  In Glass the court found the pre-separation standard of living of both parties included excessive spending and concluded plaintiff did not commit any marital misconduct. Id. at 240.

Spending habits were also found to include savings habits of the parties in Glass and Rhew.  In Rhew the parties were found to have budgeted substantially for savings and retirement accounts, satisfying the requirement in Glass that there be a custom of regular savings. Rhew v. Rhew, 138 N.C.App. 467, 473 (2000) (citing Glass v. Glass, 131 N.C.App 784, 789-90, 509 S.E.2d 236, 239 (1998). The Appeals Court in Rhew found the trial court erred in not considering contributions to savings as part of the parties' spending habits and standard of living. Id. at 473.

HOW TO DETERMINE SPOUSAL SUPPORT
   By Vicki I. Miller and Victoria Bender

I.     THE IMPORTANCE OF IDENTIFYING SPENDING HABITS

II.    STANDARD OF LIVING

III.   CALCULATING CASH FLOW

           HOW MUCH IS "TOO MUCH?"

IV.  TAX TREATMENT OF MAINTENANCE AND SEPARATE MAINTENANCE PAYMENTS

         CALCULATING THE ACTUAL MAINTENANCE PAYMENT
 

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