Is spousal support adjusted for inflation in New York?
When one spouse is financially dependent on the other, the court will typically award spousal support. Spousal support, also known as alimony, is a type of court-ordered payment that provides financial support to lower-earning spouses before, during, or after a divorce. In today’s society, the cost of living increases depending on inflation. Inflation occurs when the cost of goods in the economy increases over time. Inflation affects many things such as the cost of living which inherently affects a spousal support award. When a spouse is awarded spousal support or ordered to pay it, they often wonder whether the award is adjusted for inflation. Continue to follow along to learn whether alimony is adjusted for inflation. In addition, discover how a trusted Nassau County Alimony Attorney can help you protect your financial security throughout the divorce process.
How can inflation affect spousal support?
When a spouse is awarded spousal support, it is common for them to wonder whether their award is adjusted for inflation. This is because when a spouse is awarded this type of payment, they are allocated a certain amount of money to cover the cost of living. However, inflation can significantly affect the amount of alimony received or paid. Inflation is the rate of increase in prices over a given period. When the cost of living increases, the payments previously awarded may not be enough to cover necessary expenses. This can affect an individual’s financial security. If an individual pays or collects spousal support, they could request a modification to change the amount of the payments to reflect current inflation rates. Ultimately, it is important to understand the ways in which inflation can affect a spousal support order.
What is the Cost of Living Adjustment (COLA) clause?
When an individual pursues a post-divorce modification to their spousal support order, the court may order a COLA clause. In some cases, the court already includes COLAs in their orders when setting alimony to reflect inflation rates. However, if it is not already included, an individual can request this modification. The COLA clause will automatically reappraise spousal support based on the current cost of living annually. Essentially, the COLA clause increases spousal support as the cost of living rises, without having to file a request to the court to modify an existing order for future increases.
For more information on how spousal support can be adjusted for inflation, please don’t hesitate to contact one of our dedicated and adept team members. Our firm is committed to helping our clients protect their financial security. We will work tirelessly to help you achieve favorable results. Allow a determined Nassau County alimony attorney to assist you today.