Spousal Support Credits and the Determination of Alimony Awards in North Carolina

When awarding spousal support in North Carolina, courts must look at various factors to determine not just if support is appropriate but also how much to award and for how long. State law includes the following factors for courts to consider:

• Marital misconduct
• Earnings and earning capacity of each spouse
• Ages and health conditions of each spouse
• Duration of the marriage
• The standard of living established by the marriage
• Contributions of either spouse as a homemaker

In all, there are 16 factors outlined in North Carolina law that are used to determine the amount, duration, and manner of support payments, but courts must also consider any and all relevant factors.

Spouses who are ordered to pay spousal support can also receive credits for the payments they made during the separation but prior to the entry of a support order. It’s not always apparent whether a spouse will be required to make alimony payments, but spouses who do not make payments during this time can be ordered to pay arrears. Depending on the duration of the separation, the complexity of the divorce proceedings, and the final alimony award, arrearages can total a substantial amount of money.

It is important for trial courts to calculate carefully any credit payments made prior to an alimony order, as was the issue in a recent Court of Appeals case.

Newell v. Newell

Husband and Wife were married in 1993. Husband filed a divorce complaint seeking equitable distribution in 2020. Wife filed an answer and counterclaim in which she sought alimony, among other things.

In 2023, the trial court entered an order requiring Husband to pay Wife spousal support in the amount of $1,500 per month for ten years. This timeframe was backdated to 2015, when the parties originally separated. In addition, the trial court gave Husband credit for the money he provided to Wife during that time for both child and spousal support.

Wife appealed the alimony order. Wife made two arguments in her appeal, including that the trial court abused its discretion in determining Husband’s alimony obligation.

The Court of Appeals referenced case law and North Carolina General Statute Section 50-16.3A, stating that abuse of discretion exists when a court’s ruling is unsupported by reason. North Carolina law requires courts to include the reasons for alimony decisions. The trial court did include certain relevant findings of fact, including that Wife was the dependent spouse and that Husband engaged in marital misconduct. The appellate court determined that the trial court did not abuse its discretion when awarding alimony.

However, the Court of Appeals agreed with Wife’s abuse of discretion argument regarding the credits Husband received for spousal support. The trial court calculated the credits based on money Husband provided while the parties’ minor child was living with and being raised by Wife. Not only was much of that money intended as child support, but the calculations were arbitrary and incorrect. The trial court noted that Husband paid Wife $1,000 per month for 54 months while she was raising their child, which would equal $54,000. However, the lower court credited Husband $67,000, and this was an abuse of discretion.

The case was remanded to the trial court to address the calculation of Husband’s arrears balance.