Opinion ID: 1961489
Heading Depth: 1
Heading Rank: 5

Heading: Procedural Guidelines

Text: The parties here disagree on the proper procedure for courts to follow on modification motions. In particular they dispute both the necessity and the elements of a prima facie showing of changed circumstances prior to discovery of the respondent's financial status. We therefore think it appropriate to explain procedures to be followed in the postjudgment setting. The party seeking modification has the burden of showing such changed circumstances as would warrant relief from the support or maintenance provisions involved. Martindell, 21 N.J. at 353. A prima facie showing of changed circumstances must be made before a court will order discovery of an ex-spouse's financial status. When the movant is seeking modification of an alimony award, that party must demonstrate that changed circumstances have substantially impaired the ability to support himself or herself. This requires full disclosure of the dependent spouse's financial status, including tax returns. When the movant is seeking modification of child support, the guiding principle is the best interests of the children. See Hallberg v. Hallberg, 113 N.J. Super. 205, 209 (App.Div. 1971); Clayton v. Muth, 144 N.J. Super. at 493. A prima facie showing would then require a demonstration that the child's needs have increased to an extent for which the original arrangement does not provide. Only after the movant has made this prima facie showing should the respondent's ability to pay become a factor for the court to consider. Therefore, once a prima facie case is established, tax returns or other financial information should be ordered. We recognize that individuals have a legitimate interest in the confidentiality of their income tax returns. However, without access to such reliable indicia of the supporting spouse's financial ability, the movant may be unable to prove that modification is warranted. Similarly, without knowledge of the financial status of both parties, the court will be unable to make an informed determination as to what, in light of all the [circumstances] is equitable and fair. Smith, 72 N.J. at 360. Courts have recognized that discovery and inspection of income tax returns should only be permitted for good cause. [10] See DeGraaff v. DeGraaff, 163 N.J. Super. 578 (App.Div. 1978); see also Ullmann v. Hartford Fire Ins. Co., 87 N.J. Super. 409 (App. Div. 1965); Finnegan v. Coll, 59 N.J. Super. 353 (Law Div. 1960). Because financial ability of the supporting spouse may be crucial to the proper disposition of a motion for modification, we conclude that a prima facie showing of changed circumstances meets this good cause standard. We also recognize, however, that the financial information of other individuals may be necessarily involved, as where the supporting spouse has remarried and filed joint returns with the new spouse. In such circumstances the court should follow the procedure outlined by the court in DeGraaff : the trial judge should examine the tax return in camera and excise irrelevant matters before giving the return to the plaintiff. 163 N.J. Super. at 583. Once the above steps have been completed, the court must decide whether to hold a hearing. Although equity demands that spouses be afforded an opportunity to seek modification, the opportunity need not include a hearing when the material facts are not in genuine dispute. We therefore hold that a party must clearly demonstrate the existence of a genuine issue as to a material fact before a hearing is necessary. See Shaw v. Shaw, 138 N.J. Super. at 440; Hallberg v. Hallberg, 113 N.J. Super. at 208; Tancredi v. Tancredi, 101 N.J. Super. 259, 262 (App.Div. 1968). Without such a standard, courts would be obligated to hold hearings on every modification application. The application of the equitable principles we have outlined does not require elaborate procedures in every case. Courts should be free to exercise their discretion to prevent unnecessary duplication of proofs and arguments. The volume of postjudgment litigation provides additional, practical support for this approach. In determining whether a material fact is in dispute, a court should rely on the supporting documents and affidavits of the parties. Conclusory allegations would, of course, be disregarded. Only statements to which a party could testify should be considered. Thus, if the sole dispute centered around the supporting spouse's earnings, the disclosure of income tax returns might render a hearing unnecessary.