New Jersey Alimony Amendments
If you have an existing alimony obligation, the recent reform to New Jersey’s alimony statute may be able to provide some relief to you. While many of the provisions only apply to individuals who do not yet have a final judgment of divorce, there are several provisions which apply to cases in which the Judgment of Divorce was entered. These provisions were designed to provide relief to an obligor who has had a financial change of circumstance since the initial alimony award, who seeks to retire or whose former spouse is cohabiting.
Change of Circumstances: The recent alimony reform, may provide relief to a non-self-employed obligor who has experienced an involuntary reduction in income. Unlike the prior statute, the revisions to the statute, sets forth specific factors for the court to consider in making a determination. Under the revised statute a obligor must wait 90 days after the change in circumstance to make an application for relief; however, after the expiration of the ninety days, the statute provides the Court with the ability to retroactively terminate, modify or suspend the alimony obligation so that the effective date of the termination/modification/suspension is the date of the reduction in income/loss of employment. Prior to the reform, it was unheard of for a court to consider a modification application after only 90 days. The Court previously required a permanent change of circumstance, which could only be established after a significant period of time, had passed. In addition, if the Court did grant relief, the earliest effective date would be the date the application was filed.
Retirement: The revised alimony statute provides a rebuttable presumption that alimony shall terminate upon the obligor spouse or partner attaining full retirement age. The court may set a different alimony termination date, however, it must be for good cause shown and based upon specific written findings of fact and conclusions of law. This rebuttable presumption in favor of termination of alimony at full retirement age is significant departure from the prior law, in which the retiring party had the greater burden and in which an obligor had to actually retire before seeking relief. Under the revised statute, an obligor make seek to terminate alimony based upon prospective retirement upon reaching full retirement age.
Where the obligor seeks to retire prior to attaining the full retirement age the obligor has the burden of demonstrating by a preponderance of the evidence that the prospective or actual retirement is reasonable and made in good faith. The statute provides factors for the court to consider in determining whether the retirement is reasonable and made in good faith. These factors include the obligor’s field of employment and the generally accepted age of retirement in that field, as well as the age when the obligor becomes eligible for retirement, including mandatory retirement dates or the dates upon which continued employment would no longer increase retirement benefits. Under the revised statute, an obligor who seeks to retire prior to attaining full retirement age may also make an application prior to retirement and the court shall establish the conditions under which the modification or termination of alimony will be effective.
Cohabitation: Alimony may be suspended or terminated if an obligee cohabits with another person. The revised statute defines cohabitation as a “mutually supportive, intimate personal relationship in which a couple has undertaken duties and privileges that are commonly associated with marriage or civil union but does not necessarily maintain a single common household.” The statute sets forth certain factors the court should access to determine whether cohabitation is occurring. The revisions to the statute provide a significant departure from the prior law in that a court may not find an absence of cohabitation solely on grounds that the couple does not live together on a full-time basis.
Conclusion: If you presently have an alimony obligation and have experienced a change in financial circumstances due to loss of employment or a reduction of income, are considering or have retired or if you suspect that your former spouse or partner is cohabiting, you may have a basis to suspend, modify or terminate your alimony obligation. Schedule a free consultation to discuss your options.