The Maintenance Formula

The Maintenance Formula

Process

During Divorce

Colorado

MaintenanceTaxes

For mid-range incomes and marriages of 3-20 years, Colorado has an advisory maintenance formula, roughly 40% of the higher earner's income minus 50% of the lower earner's, adjusted for taxes. It's only a guideline, not binding.

Colorado law gives judges an advisory formula under C.R.S. § 14-10-114. It applies when the marriage lasts at least three years and the parties' combined annual adjusted gross income is $240,000 or less (about $20,000/month). The base calculation is 40% of the higher earner's monthly adjusted gross income minus 50% of the lower earner's. Because maintenance is no longer taxable as income to the recipient or deductible to the payer (for orders after 2018), the result is then reduced by a multiplier, 80% when combined monthly income is $10,000 or less, and 75% when it's between $10,001 and $20,000. Maintenance plus the recipient's own income can't exceed 40% of the couple's combined income.

The formula is purely advisory; it doesn't create a presumptive amount, and a judge can award more, less, or none based on the statutory factors and the totality of circumstances. The formula may not apply to high earners (combined income above $240,000) or to marriages shorter than 3 or longer than 20 years; in those cases the court exercises full discretion. Online calculators can give a rough estimate, but the statute and the judge control the outcome.

Links

Website

Location

Colorado

Colorado, USA