Adjustment of Alimony a. The Parties’ intention is for the alimony amount to be determined on a calendar-year basis. However, because the information concerning the Parties’ Gross Earned Income, as reflected on their tax returns for the previous year, may not be available until April 15 of the following year, the Parties have chosen May 1 as the date on which to calculate (i) the amount of alimony to be paid for the twelve months beginning on May 1 (by applying the Alimony Formula to the Parties’ Gross Earned Incomes for prior calendar year), and (ii) the amount by which the alimony paid by the [Husband/Wife] during the previous calendar year should be adjusted based on the actual Gross Earned Incomes of the Parties during the previous calendar year. If, based on this calculation, the [Husband/Wife] was entitled to more support during the prior calendar year than she was paid, the [Husband/Wife] shall pay, in twelve equal monthly installments beginning on May 1, the additional amount of alimony due for the prior calendar year. If, based on this calculation, the [Husband/Wife] was entitled to less support during the prior calendar year than [he/she] was paid, the [Husband/Wife] shall be entitled to deduct, in twelve equal monthly amounts beginning on May 1, the amount of the overpayment. The Parties shall adjust the amount of alimony to be paid on May 1, 20__, and on each May 1 thereafter so long as the [Husband/Wife] has earned income.
Adjustment of Alimony a. The Parties determined the amount of monthly alimony to be paid under this Agreement by means of the following calculation: (a) subtract the [Husband/Wife]’s annual earned income from the annual earned income of the [Husband/Wife] (including in each Party’s earned income any deferred compensation from an employer or contribution by the employer to the Party’s retirement account(s)), (b) multiply the difference by one-third, and (c) divide the resulting amount by 12. This calculation shall be referred to as the “Alimony Formula” in this Exhibit.
