Alimony - How Much is Enough?

Spousal Support can be an emotionally charged issue. For the payor "how little can it be?" For the recipient, "That's never going to be enough!"

by Bob Mitton: CEO, Tidal Pointe Advisors, CDFA

When couples go through divorce, there is often a shared understanding that some level of spousal maintenance, or alimony, is necessary. The harder question is how much is fair and sustainable for both parties.

In many cases, alimony discussions rely heavily on monthly budgets. Unfortunately, those numbers are often rushed, emotionally driven, or simply inaccurate. At the same time, attorneys are hired to advocate for their client’s position. If you are the payor, the argument will naturally lean toward the lowest possible amount. If you are the recipient, it will lean toward the highest. While that approach may be expected, it does not always lead to equitable or lasting outcomes.

There is a more balanced way to determine spousal support.

Moving Beyond Budgets and Positions

Negotiated settlements, whether reached through attorneys, mediation, or collaborative divorce, tend to produce better long-term outcomes than court-imposed decisions. The challenge is finding a number that both parties can trust.

This is where working with a Certified Divorce Financial Analyst, or CDFA®, can change the conversation.

Rather than focusing only on today’s cash flow, a CDFA builds long range financial projections for each spouse, often looking 15 to 20 years into the future. These projections incorporate income, expenses, assets, liabilities, taxes, and future financial goals. In effect, each party sees a personalized financial plan based on the proposed settlement terms.

Finding the Financial “Sweet Spot”

When both spouses can see how different alimony scenarios affect their future net worth, cash flow, and lifestyle, negotiations often become far more productive. Fear and uncertainty are major drivers of conflict in divorce. People hesitate to agree to support terms when they are unsure whether they will be financially secure.

By modeling the outcomes, a CDFA helps replace emotion with clarity.

When the data shows that the payor can meet support obligations while still growing net worth and achieving long term goals, resistance often softens. Likewise, recipients gain confidence knowing that the support amount allows them to maintain stability and plan for the future.

Data Creates Agreement

Alimony disputes frequently stall because each side is arguing a position without shared financial understanding. Numbers, when done correctly and transparently, create common ground.

Rather than spinning your wheels trying to persuade the other side, objective financial analysis allows both parties to see what is realistic, sustainable, and fair.

At Tidal Pointe Advisors, we help individuals and divorce professionals bring clarity to spousal support decisions by grounding negotiations in data, not fear. Our goal is not to advocate for one side, but to help both parties move forward with confidence and financial stability.