Source: https://www.faudivorcelaw.com/Practice-Areas/Alimony-Reform-Statute.shtml
Timestamp: 2019-04-20 02:35:34+00:00

Document:
On Sept. 10, 2014, New Jersey enacted a new alimony reform statute N.J.S.A 2A:34-23a (the Alimony Reform Act or "Act"). Here are some common questions being raised by divorcing and divorced parties.
Q. Can I still receive permanent alimony?
A. No. Permanent alimony which was applicable in marriages (generally) over 15 years was replaced by "open durational alimony." Under the Act, for marriages under 20 years, the term of alimony can no longer exceed the length of the marriage. For marriages of 20 years or more, open durational alimony is now applicable. However, the Act further provides for a presumption that alimony will terminate when the payer spouse reaches his/her full age of retirement, defined as when the payer reaches the age when he/she can commence collecting full Social Security benefits (generally age 67 years old). However under the Act this presumption can be overcome taking into consideration the factors set forth in the new statute.
Q. Does the Alimony Reform Act effective September 10, 2014 apply to me if I was divorced before 9/10/14?
A. Yes. The Act applies to anyone not yet divorced and parties who are divorced and who meet certain conditions and circumstances under the new Act. For example the new Act addresses conditions upon which alimony may be modified, terminated or suspended based on the retirement of the payer (the supporting ex-spouse), cohabitation of the payee (the supported ex-spouse) or loss of employment, or reduction of income of the payer.
Q. I am approaching retirement and paying permanent alimony under my property settlement agreement. Does the new act address ending my alimony obligation based on retirement?
A. Yes. The Act has specific factors a judge must consider if you were divorced prior to the enactment of the Alimony Reform Act. If your former spouse will not agree to terminate or modify the alimony based on your retirement, then you must file a post-judgment motion to terminate/modify the alimony based on retirement. The court will likely hold a plenary hearing (trial) if the payee disputes your "good faith" plan for retirement. The court must then apply specific factors, including factors that will apply if you were self-employed, to determine whether you have demonstrated good faith retirement. The judge after applying all relevant factors can terminate or reduce the alimony. Under the Act, it is the payee's burden of proof to establish that the alimony should continue, if the payer has met his/her full age of retirement, irrespective of his/her health and assets.
Q. What if I have not reached "full retirement" age and I want or need to retire sooner?
A. Under the new Act, the court must consider certain factors to determine whether retirement prior to reaching full Social Security retirement age is warranted. The court must consider your employment and whether your job is one where retirement before "full retirement age" is mandatory such as NJ State Troopers, policeman, fireman and certain union positions. Also, the court may consider whether you worked in a job/career where it is generally expected that the employee would retire earlier. Also, the court may consider the expectations of the parties during the marriage as to the issue of earlier retirement.
Q. Are there any other provisions of the new Act that bear on the issue of retirement and alimony?
A. Yes. Prior to the enactment of the Act, it was the payer's burden to prove that they could no longer afford to pay the alimony award. Under the new Act, the judge is required to consider whether the payee should have and had the ability to save for her/his own retirement. In making a determination, the judge must consider that neither party has a greater right to live a lifestyle reasonably comparable to lifestyle enjoyed during the marriage. Also, the judge can no longer use his/her discretion to deny the payer's application. Rather the court must make written findings of fact and law to support the decision.
Q. It appears as though I will have to hire an attorney and incur substantial legal fees to end my alimony obligation based on retirement. Is there any other way to address this matter?
A. Yes. You can notify your ex-spouse in writing that you are retiring and you would like to attend mediation to address the matter. Your ex-spouse may agree to mediate the issue as it will be costly for both parties to hire attorneys and go to court. An experienced matrimonial mediator can handle the matter and submit a consent order to the court if an agreement is reached in mediation. If your ex-spouse will not respond or agree to attend mediation, then you will be required to file a post-judgment motion to terminate alimony and hiring an attorney is advisable.
Q. How will family court judges apply the new Act?
A. Statutes enacted in the area of family law must be applied by judges. Of course, judges to some degree must interpret the intent of the statutory factors and apply the factors based on the facts and proofs presented. The 2014 Alimony Reform Act is a sea-change in alimony public policy in New Jersey and it is anticipated that the Act will change on how the family courts make decisions. Until the enactment of reform on Sept. 10, the public policy was for permanent alimony to be considered first. Permanent alimony is defined as alimony for life or until there is a material change of circumstance. After enactment of alimony reform, the public policy changed completely. Permanent alimony was eliminated, and two limits on the duration of alimony were introduced: (1) no longer than the duration of the marriage, and (2) an end at retirement. This is a major change. Alimony went from a lifetime obligation to a durational obligation. The definition of duration is a period of specific length. Of course we have to wait and see how judges interpret the Act.
Q. Will the new Act address if I have a change of circumstances such as loss of employment, reduction in income or temporary or permanent illness affecting my ability to continue to pay my alimony obligation?
A. Yes. The new Act specifically addresses these circumstances. For example, before the Act, a payer of alimony's motion to modify alimony based on one of these circumstances could be denied by the judge (under existing case law) because enough time had not passed. Under the new statute, the judge is required to review the request to modify the alimony after 90 days has passed from the time the "change of circumstances" has occurred. The judge must also consider specific factors in determining whether a defined change of circumstances has occurred and whether a temporary or permanent modification of the alimony obligation is warranted given the facts and proofs presented. Again, the judge must make specific findings of facts and conclusions explaining their decision. Again, the parties can and should attend mediation if viable to address whether modification is appropriate, to avoid very costly legal fees.
Q. What happens if my ex-spouse for whom I am paying alimony enters into a cohabitation or mutually supportive relationship with another person?
Q. The Act significantly changes the prior case law on cohabitation and its impact on alimony. The new Act specifically defines cohabitation based on statutory factors. What is significant is that the judge can find cohabitation exists even if the supported, payee spouse and the cohabitant do not live together permanently. Also, of even greater significance, if the judge finds cohabitation exists the court can only terminate or suspend the alimony. Under prior case law the judge had the discretion to modify the alimony eve after finding cohabitation. In determining whether to terminate or suspend the alimony the court must consider the length of the cohabitation relationship.
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2A:34-23. Orders as to alimony or maintenance of parties and care, custody, education, and maintenance of children.
For any marriage or civil union less than 20 years in duration, the total duration of alimony shall not, except in exceptional circumstances, exceed the length of the marriage or civil union. Determination of the length and amount of alimony shall be made by the court pursuant to consideration of all of the statutory factors set forth in subsection b. of this section. In addition to those factors, the court shall also consider the practical impact of the parties' need for separate residences and the attendant increase in living expenses on the ability of both parties to maintain a standard of living reasonably comparable to the standard of living established in the marriage or civil union, to which both parties are entitled, with neither party having a greater entitlement thereto.
f. Except as provided in subsection i., nothing in this section shall be construed to limit the court's authority to award open durational alimony, limited duration alimony, rehabilitative alimony or reimbursement alimony, separately or in any combination, as warranted by the circumstances of the parties and the nature of the case.
(h) Any other relevant factors affecting the obligor's decision to retire and the parties' respective financial positions.
(h) Any other relevant factors affecting the parties' respective financial positions.
(4) The assets distributed between the parties at the time of the entry of a final order of divorce or dissolution of a civil union shall not be considered by the court for purposes of determining the obligor's ability to pay alimony following retirement.
l. When a self-employed party seeks modification of alimony because of an involuntary reduction in income since the date of the order from which modification is sought, then that party's application for relief must include an analysis that sets forth the economic and non-economic benefits the party receives from the business, and which compares these economic and non-economic benefits to those that were in existence at the time of the entry of the order.
"Full retirement age" shall mean the age at which a person is eligible to receive full retirement for full retirement benefits under section 216 of the federal Social Security Act ( 42 U.S.C. s.416).
Amended by L.1971, c. 212, § 8; L.1980, c. 181, § 1, eff. Dec. 31, 1980; L.1983, c. 519, § 1, eff. Jan. 17, 1984; L.1988, c. 153, § 3; L.1997, c. 302, § 1, eff. Jan. 8, 1998; L.1999, c. 199, § 1, eff. Sept. 13, 1999; L.2005, c. 171, § 1, eff. Aug. 5, 2005; L.2006, c. 103, § 78, eff. Feb. 19, 2007; L.2009, c. 43, § 1, eff. July 1, 2009; L.2014, c. 42, § 1, eff. Sept. 10, 2014.

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