Alimony In New Jersey

Alimony is one of the most important and misunderstood parts of divorce in New Jersey. If you are going through a divorce or thinking of getting one, you need to understand how the courts determine and enforce alimony. This article will cover the different types of alimony, the factors the courts consider when awarding alimony, how to modify or terminate alimony and more. By the end you will know the legal landscape of alimony in New Jersey.

What is Alimony?

Alimony, also known as spousal support, is money one spouse pays to the other during or after a divorce. In New Jersey alimony is meant to prevent unfair financial consequences of a marriage. The purpose is to make sure the lower earning spouse or the spouse who sacrificed their own career for the benefit of the marriage has the means to live a lifestyle similar to the one they had during the marriage.
There is a big difference between alimony and child support. Child support is meant to support the children of the marriage while alimony is meant to bridge the financial gap between the spouses after divorce to ensure both parties are able to live a lifestyle reasonable comparable to their marriage.

Types of Alimony in New Jersey

There is a big difference between alimony and child support. Child support is meant to support the children of the marriage while alimony is meant to bridge the financial gap between the spouses after divorce to ensure both parties are able to live a lifestyle reasonable comparable to their marriage.

Types of Alimony in New Jersey

New Jersey law recognizes 5 types of alimony, each designed to meet different needs based on the length of the marriage, the roles of each spouse and the circumstances of the divorce.

Open Durational Alimony

This type of alimony replaces the old permanent alimony. It is awarded in marriages that are 20 years or longer. Open durational alimony does not have a fixed end date but can be modified or terminated based on significant changes in circumstances, such as a good faith retirement. This type of alimony ensures a spouse who was financially dependent during a long term marriage continues to receive support.

Limited Duration Alimony

Limited duration alimony is awarded for shorter marriages that don’t reach 20 years. The idea is a spouse may need support for a period but will become self-sufficient. The duration of this type of alimony cannot exceed the length of the marriage and once the set term is over, payments stop unless there are good reasons to extend.

Rehabilitative Alimony

Rehabilitative alimony is meant to help a spouse become financially independent by covering expenses like education or job training. This type of alimony is common when one spouse needs time and resources to get back to work or improve their earning capacity after a period of staying home or working in a lower paying job during the marriage. It can be paid in lieu of a “regular” alimony payment or in addition to one.

Reimbursement Alimony

Reimbursement alimony compensates a spouse who supported the other financially while they got a degree or professional training. This type of alimony recognizes that one spouse made financial sacrifices for the other’s career advancement. It’s less common but important when a couple made joint sacrifices for one spouse’s long term financial success. As with rehabilitative alimony, reimbursement alimony can be paid in lieu of a “regular” alimony payment or in addition to one.

Temporary (Pendente Lite) Alimony

Temporary alimony, or pendente lite support, may be awarded during the divorce itself. It ensures the dependent spouse can maintain financial stability during the divorce process. Pendente lite alimony stops when the divorce is final and another type of alimony may take its place.

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What Courts Consider When Awarding Alimony

New Jersey courts consider several factors when deciding if alimony is appropriate and if so what type and amount. No two cases are the same and courts look at the entire marital situation. The main factors include:

Length of the marriage: Longer marriages often result in longer or more alimony, especially if one spouse was financially dependent.
Age and health of both spouses: Older and/or less healthy spouses may not be able to become financially independent, which impacts the amount and duration of alimony.
Standard of living during the marriage: Alimony is meant to help both spouses maintain a lifestyle reasonably similar to the one they had during the marriage.
Income and earning capacity: The court looks at both spouses’ current income and potential future earnings, especially if one spouse stayed home to care for children or sacrificed career opportunities.
Contributions to the marriage: Contributions are not just financial. Raising children, supporting the household and contributing to the other spouse’s career are all considered.
Parental responsibilities: Alimony is affected if one spouse is the primary caregiver for the children, as that limits their ability to work outside the home.
Education and vocational skills: A spouse with less education or outdated skills may need alimony to get the training to become financially independent.
Property division: How assets are divided in the divorce also impacts alimony. If one spouse gets a large share of the marital assets, that may reduce the need for, or amount of, alimony payments.

Modification or Termination of Alimony

Alimony is not a permanent obligation. New Jersey law allows for modification or termination of alimony if there is a substantial change in circumstances.

Modification of Alimony

Alimony can be modified if there is a significant increase or decrease in income of either party, loss of employment, or new financial responsibilities like caring for an ill family member. The spouse seeking modification must prove these changes are both substantial and ongoing. Temporary fluctuations in income, for example, might not be enough to justify a modification.

Termination of Alimony

Alimony ends when the recipient spouse remarries or cohabitates with a new partner. Retirement can also be grounds for alimony termination, but the court will look at whether retirement is voluntary or involuntary and whether it justifies stopping payments. Death of either spouse will also terminate alimony obligations.

Cohabitation and Alimony

In New Jersey cohabitation can have a big impact on alimony. If the recipient spouse starts living with someone else the court may terminate or suspend alimony depending on the circumstances. Proving cohabitation is not always easy and requires more than just showing the ex-spouse and their new partner live together.

Cohabitation means a relationship like a marriage where the couple shares responsibilities and financial resources. The paying spouse may hire a private investigator or use other means to gather evidence of cohabitation to present to the court.

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Duration of Alimony

The duration of alimony in New Jersey depends on many factors but mostly the length of the marriage. For marriages less than 20 years alimony, is generally awarded for a period not to exceed the length of the marriage. For example, if a couple was married for 10 years, alimony will not generally be awarded for more than 10 years. But this is not a hard and fast rule and may be adjusted based on the specific needs and circumstances of the parties.

For marriages of 20 years or more open durational alimony may be awarded. This type of alimony continues until there is a significant change in circumstances like retirement or cohabitation or until the court determines it is no longer needed.

Tax implications of Alimony

The tax treatment of alimony changed significantly since the Tax Cuts and Jobs Act of 2017. Under the old law the paying spouse could deduct alimony from their federal taxable income and the recipient spouse had to report the payments as income on their federal tax returns. But for divorces finalized after January 1, 2019 alimony is no longer deductible (for federal taxes) for the paying spouse and the recipient no longer has to report it as income on their federal tax returns.

These changes have made a big impact on how alimony is negotiated with the tax burden now almost entirely on the paying spouse. It’s important to consult with an attorney or financial advisor to understand the tax implications of an alimony award.

Enforcing Alimony Payments

If one spouse doesn’t make court ordered alimony payments, the other spouse has several options to enforce the order. One of the most common is wage garnishment, where the court orders the delinquent spouse’s employer to withhold a portion of their paycheck to pay alimony.

In extreme cases the court may take more drastic measures such as seizing bank accounts or assets or suspending professional licenses and driver’s licenses. The New Jersey Probation Division for Child Support Enforcement often monitors alimony payments to ensure compliance.

Alimony vs Child Support

Although both alimony and child support are financial obligations of divorce, they serve different purposes. Alimony is for a spouse and child support is for the children. The court calculates these payments separately and they are not interchangeable.

One big difference is child support is not modifiable based on cohabitation or remarriage while alimony often is. The amounts for both child support and alimony are based on income but the calculations are different.

How to Modify an Alimony Agreement

To modify an alimony agreement you must show a significant change in circumstances, such as a major increase or decrease in income, a new health condition, or changes in the recipient spouse’s financial needs. The court will review the request (including an updated financial statement) and legal assistance is often necessary to navigate the process.

Alimony and Retirement

Retirement is one of the most common reasons to modify or terminate alimony. But the court will look at whether retirement is voluntary or forced, the age and health of the paying spouse and whether the recipient spouse still needs support. Courts are less likely to reduce or eliminate alimony if the retirement is seen as premature or if it imposes undue hardship on the recipient.

Practical Tips for Alimony

Negotiate alimony: Work with your attorney to negotiate fair alimony terms based on your financial needs and earning capacity.
Consider mediation: Mediation can help both parties agree on alimony without the need for a long court battle.
Understand tax implications: Post 2019 alimony agreements have different tax rules so plan accordingly.

Summary

Alimony in New Jersey is a tricky and emotional issue that requires thought. With different types of alimony, multiple factors that go into an award and the ability to modify or terminate alimony, understanding alimony law is key for anyone going through a divorce. Whether you are negotiating an initial alimony agreement, modifying an existing one or enforcing payments, legal guidance is important to get a fair result. By being informed you can navigate the alimony maze and get the best possible outcome for your financial future.