The 4 Types of Alimony in Tennessee and When They Apply
When a marriage ends, the financial impact can be significant, especially for one spouse who earned less or sacrificed career growth during the relationship. Alimony, also called spousal support, helps balance that disparity.
In Tennessee, there are four types of alimony, each designed to serve a different purpose based on the facts of the case. Knowing the purpose behind each type of alimony can help divorcing spouses prepare realistic expectations.
Tennessee courts do not apply a one-size-fits-all rule. Instead, judges evaluate the financial needs and earning capacity of each spouse, along with several statutory factors, before awarding support.
The Law & Mediation Office of Sarah Turner helps clients understand which type of alimony may apply to their divorce and what they can expect during negotiations or court proceedings.
Rehabilitative Alimony
Rehabilitative alimony is intended to help a spouse become self-sufficient after divorce. The goal is to provide short-term support while the recipient gains the skills or credentials needed to re-enter the workforce. In Tennessee, to be "rehabilitated" means to achieve, with reasonable effort, an earning capacity that will permit the economically disadvantaged spouse's standard of living after the divorce to be reasonably comparable to the standard of living enjoyed during the marriage, or to the post-divorce standard of living expected to be available to the other spouse, considering the relevant statutory factors and the equities between the parties.
Tennessee courts prefer rehabilitative alimony over long-term support when the receiving spouse is capable of earning a living with short-term financial help. The payments are usually set for a relatively short duration and intended to provide financial support until the person completes the education or training needed to become rehabilitated. That said, rehabilitative alimony remains within the court's control throughout the time it is awarded and may be modified upon a showing of a substantial and material change in circumstances. For rehabilitative alimony to be extended beyond the term initially established, or to be increased in amount, or both, the recipient of rehabilitative alimony has the burden of proving that all reasonable efforts at rehabilitation have been made and have been unsuccessful.
If the court finds that rehabilitation isn’t possible, other types of alimony may be considered instead.
Alimony in Futuro
Alimony in futuro (also known as periodic alimony) is awarded in longer marriages where one spouse is unlikely to achieve financial independence. This type of alimony is ongoing and does not require a set end date. Because of the nature of alimony in futuro, it is always modifiable upon a showing of substantial and material change of circumstance of either the recipient or paying spouse. Alimony in futuro also terminates automatically and unconditionally upon the death of either party or remarriage of the recipient. There is also a rebuttable presumption that alimony in futuro should be reduced or terminated once the receiving spouse begins living with a third-party.
Courts may award alimony in futuro when one spouse is advanced in age and unlikely to be able to meaningfully enter the workforce, has serious health issues, lacks education, or has been out of the workforce for an extended period of time. It’s typically used when the financial gap between the spouses is unlikely to be resolved through short-term support alone.
Transitional Alimony
Transitional alimony is a short-term solution awarded when one spouse needs time to adjust to the financial impact of divorce but does not require rehabilitation. This type of support is not based on the expectation of returning to school or entering a new career. Instead, it’s designed to ease the transition into single-income living. Courts often use transitional alimony when both spouses are employed but one needs temporary assistance adjusting to the post-divorce budget.
Unlike rehabilitative alimony and alimony in futuro, transitional alimony is not modifiable in most cases. That means once the amount and duration are set, it typically cannot be changed. There are only three (3) exceptions to this general rule; and they are if the parties agree transitional alimony can be modified and memorialize that agreement in the final decree of divorce, if the court orders transitional alimony to be modifiable and includes that language in the final decree of divorce, or if the recipient lives with a third-party or remarries while receiving transitional alimony. At which time, a rebuttable presumption arises that all or part of the alimony awarded should be suspended.
Alimony in Solido
Alimony in solido is a lump-sum award, often used to divide marital property or equalize a financial imbalance after divorce. This type of alimony determines a specific dollar amount owed from one spouse to the other on the day the divorce decree is entered and can be paid in one lump-sum payment or in installments over a fixed period of time. Alimony in solido can be awarded to provide financial support to a spouse, to effectuate an equitable division of marital property, or both. Alimony in solido may be awarded for attorney fees and expenses incurred in connection with the divorce proceedings, if the court determines it appropriate after considering certain statutory provisions. This form of alimony is non-modifiable and does not terminate upon the death or remarriage of either party.
Because alimony in solido cannot be changed later, there is a finality to this type of alimony award the other three (3) alimony options do not provide (especially rehabilitative alimony and alimony in futuro).
How Courts Decide Which Type Applies
Courts in Tennessee consider multiple statutory factors before deciding which type of alimony is appropriate. Judges must make decisions based on detailed information provided by both parties during the case, including financial disclosures and evidence of marital contributions. Before awarding alimony, the court weighs specific circumstances that influence the final determination, such as:
Length of the marriage: Longer marriages may justify more lasting forms of financial support.
Standard of living during the marriage: Courts aim to prevent a dramatic decline in living conditions post-divorce.
Earning capacity of each spouse: Judges assess both current income and future earning potential of both spouses.
Age and health of the parties: Medical needs or advanced age can justify ongoing support.
Contributions to the marriage: This includes not only each spouse's financial contributions, but also homemaking, child-rearing, and supporting a spouse’s career.
All of these factors are evaluated together, meaning no single item is controlling. Courts balance the available information to choose the alimony type that best fits the spouses’ post-divorce reality.
Situations Where Multiple Types of Alimony May Apply
In some divorces, a judge may award more than one type of alimony. For instance, a spouse might receive a lump-sum alimony in solido payment for property division, along with rehabilitative alimony to support retraining for a new career. Courts may also award transitional alimony followed by alimony in futuro if the spouse’s long-term earning ability remains uncertain.
Multiple alimony types may be used to address both immediate and long-term needs. These blended arrangements are tailored to help one spouse achieve independence while also addressing property, debt, and other obligations from the marriage.
Modifying or Terminating Alimony
Not all alimony types can be modified. Rehabilitative alimony and alimony in futuro can be reviewed if there's a significant change in financial circumstances, as discussed in more detail above. An example of when modification may be appropriate would be if the paying spouse becomes disabled or the recipient secures stable employment. In those circumstances the court may adjust the order. On the other hand, transitional alimony and alimony in solido are generally non-modifiable, meaning the court does not have the power to change the original alimony amount or duration once set.
Alimony in futuro ends automatically if the receiving spouse remarries. Cohabitation with a third-party may also justify termination or reduction under Tennessee law, if a spouse is receiving alimony in futuro or transitional alimony. The obligation to pay all forms of alimony, except alimony in solido, automatically terminate upon the death of either spouse. As you can imagine, every case is different, and requests to modify or terminate an alimony obligation require evidence and often a court hearing.
Tax Treatment of Alimony
Understanding how alimony is taxed is important when calculating what each party will actually pay or receive. The rules changed significantly in recent years, and the tax consequences can affect negotiation strategy and long-term planning. Alimony orders entered on or after January 1, 2019, are subject to different rules than those finalized before that date. The current tax treatment of alimony depends on when the divorce decree or alimony order was issued:
Orders entered before 2019: The paying spouse can deduct alimony payments from their income, and the recipient must report it as taxable income.
Orders entered after 2018: The paying spouse cannot deduct payments, and the recipient does not report them as income.
Modified orders: If a pre-2019 order is modified after 2018 and the new terms follow the updated law, the new tax rules apply.
Child support distinctions: Payments classified as child support are never deductible or taxable, regardless of timing.
Court-ordered lump sums: One-time payments may be treated differently, depending on how they're classified in the order or agreement.
Since tax treatment can directly affect a party’s financial picture, it’s critical that divorce orders clearly specify how support is categorized and when it begins.
Speak to an Experienced Divorce Lawyer
If you're going through a divorce and need guidance on spousal support, the Law & Mediation Office of Sarah Turner can help you understand your rights and obligations. Sarah Turner represents clients throughout Tennessee, including Shelby County, Tipton County, Fayette County, and Hardeman County. Reach out to discuss your options.