special report: alimony reform & understanding the changes in new jersey

What You Need to Know About

Alimony Reform & Alimony Laws

In New Jersey as of September 10, 2014

Presented by:

Divorce & Family Lawyers in New Jersey

Special Report: Alimony Reform in New Jersey

First of all…

Who does alimony reform apply to?


In brief, the news is this: On September 10, 2014, Governor Christie signed New Jersey alimony reform into law when he approved Bill A-845, a legislative measure that changes and clarifies some of the rules concerning how and when spousal support is awarded in the state. The new laws take effect immediately.

So, who does alimony

reform apply to?

The wording of the new laws is very clear: alimony reform is NOT retroactive, meaning that changes ONLY apply to individuals who are now in the process of getting divorced or who divorce in the future.

If you are someone with an existing alimony order, nothing has changed. If you feel it should be modified, you still have the option of filing a motion to formally amend it. Everyone has and will continue to have the option to request modifications to alimony agreements. Not everyone's request for modification will be granted. Each case is unique, so it is advisable to check with an attorney who can help you determine if your modification requests are right for you.


Understanding the Law Changes:

1. How Long a Marriage Lasts - its Duration –

Matters More than Ever


Understanding the Law Changes: How Long a Marriage Lasts - its Duration – Matters More than Ever

When marriages last less than 20 years, under alimony reform, the total duration of alimony shall not exceed the length of the marriage, except in exceptional circumstances.

In other words, if you were married for less than 20 years, alimony generally cannot exceed 20 years. If you are married for 15 years, alimony would not exceed 15 years.

In the past, this was not always the case. Prior to the amended statute, the courts had the discretion to award permanent, or lifetime, alimony in long term marriages.



2. Good-bye to Permanent (or Lifetime) Alimony


Understanding the Law Changes: Good-bye to Permanent (or Lifetime) Alimony

Exceptional circumstances which may require an adjustment to the duration of alimony include:

• The ages of the parties at the time of the marriage and at the time of the alimony award;• The degree and duration of the dependency of one party on the other party during the marriage;• Whether a spouse or partner has a chronic illness or unusual health circumstance;• Whether a spouse has given up a career or a career opportunity or otherwise supported the career of the other

spouse;• Whether a spouse has received a disproportionate share of equitable distribution;• The impact of the marriage on either party’s ability to become self-supporting, including but not limited to either

party’s responsibility as primary caretaker of a child;• Tax considerations of either party; • Any other factors or circumstances that the court deems equitable, relevant and material.

Under alimony reform, permanent, or lifetime, alimony has essentially been terminated in New Jersey. It has been replaced by a term known as “open durational” alimony. Open durational alimony is not permanent in nature and requires the court to conduct an analysis of “exceptional circumstances” before granting any alimony award that lasts longer than the length -- or duration -- of the marriage.



3. “Equal Footing” Between Spouses in

Maintaining Standard of Living


Understanding the Law Changes: “Equal Footing” Between Spouses in Maintaining Standard of Living

Of particular significance in the new alimony legislation is wording that mandates the courts to consider the “practical impact” of both parties’ need for separate residences and the ability of both parties to maintain a standard of living comparable to the standard of living established during the marriage. The new law clearly states that neither party has a greater entitlement to that standard of living than the other.

This is a key distinction because the old statute did not speak to placing both parties on this kind of equal footing. In certain cases, such as when one spouse stays home to raise the kids, and thus has no income, this “equal footing” may factor in quite a bit in determining how much support is needed to maintain a comparable standard of living.



4. Alimony Obligations End At Retirement, Unless Special Circumstances Exist


Understanding the Law Changes: Alimony Obligations End At Retirement, Unless Special Circumstances Exist

As the new laws outline, it is now considered a “rebuttable presumption” that alimony can be modified or terminated when the person obligated to pay reaches full retirement age. A rebuttable presumption is something that is taken to be true unless someone comes forward to contest it and proves otherwise.

This is a pretty big change concerning how retirement is treated in the alimony system. Under the old statute, the prospective retiree was expected to make his or her application to the court and prove that a “change in circumstance” existed to warrant the modification or termination of alimony. It was then left to the court’s discretion to agree or disagree with the “change in circumstance” argument.

There’s one pretty major catch to this you should be aware, however: The amended statute makes a distinction between “full retirement age” and “early retirement.” An early retirement is not afforded the benefit of the rebuttable presumption. In these cases, the obligor has the burden of demonstrating by a preponderance of the evidence that the prospective retirement is reasonable and made in good faith.



5. Modification of Alimony is More Accessible if You Experience Unemployment or Loss of Income


Understanding the Law Changes: Modification of Alimony is More Accessible if You Experience Unemployment or Loss of Income

• It used to be that if you lost your job or lost income, you had to go through countless rounds of litigation and onerous

discovery schedules to prove the loss of income or period of unemployment was not “temporary.” Fortunately, the amended statute provides clear guidance as to when a modification can be sought in the context of involuntary unemployment.

• The amended statute provides the court with the authority to terminate or modify alimony awards if an individual has been involuntarily unemployed for a period of 90 days.

• Old alimony laws did not fix a time period to the unemployment. It was left up to the court’s discretion to determine whether the unemployment was temporary or permanent in nature.

• The amended statute also provides that the assets distributed between the parties at the time of the entry of the final judgment of divorce shall not be considered by the court for purposes of determining the obligor’s ability to pay alimony following retirement.

• Under the old statute allowed for the appreciation of assets post-divorce to be considered in the ability to pay analysis. It remains unclear whether this scenario still applies or whether the courts will interpret this provision of the amended statute literally and not consider any assets (including appreciation) when determining an obligor’s ability to pay alimony post retirement.



6. Cohabitation Doesn’t Necessarily Mean Living Together Anymore


Understanding the Law Changes: Cohabitation Doesn’t Necessarily Mean Living Together Anymore

Under the amended statute alimony may be suspended or terminated if the payee cohabits with another person.

Cohabitation is defined as a “mutually supportive, intimate personal relationship in which a couple has undertaken duties and privileges hat are commonly associated with marriage but does not necessarily maintain a single common household.”

In prior statute, actual cohabitation -- meaning, living together -- needed to be proven in addition to the financial benefit received by the payee spouse due to the cohabitation.

What does this mean? You don’t need to get the private investigator involved so quickly. A litigant can prove cohabitation by showing intertwined finances such as joint bank account or other joint holdings; the sharing or joint responsibility of living expenses; and the recognition of the relationship in the couple’s social and family circle.


Closing Statements

Thank you for joining us for this special report on alimony reform in New Jersey.

Of course, every alimony situation is unique. If you have questions concerning alimony -- whether you will pay or receive it -- we encourage you to get in touch with a family law attorney to discuss your options. Please feel free to contact us at Weinberger Law Group. We offer a free one-hour attorney consultation and are happy to sit down with

you and go over your situation.

In sharing this information, we hope learning about alimony reform has helped you understand how the new laws might affect your personal situation.

Our takeaway from the changes brought about by New Jersey alimony reform is that our alimony system is now more clearly defined than ever before. Gone are many vague wordings and open-ended rules that often left parties on both

sides feeling liking the system was not treating them fairly, especially if they were trying to go it alone without an attorney. Clearer rules will be a benefit to everyone.


For more information about Alimony Laws in New Jersey, or anything related to Family Law, call, email, or visit our website:

www.WeinbergerLawGroup.com

[email protected]

The process and information contained in this presentation pertains to New Jersey Divorce Law.

This presentation is for information purposes only and does not constitute legal advice.

For guidance on your specific situation, please contact a divorce attorney.

(888) 888-0919

http://www.wlg.com/