With Alimony Reform Law, Garden State Turns Over a New Leaf

Few topics in the field of family law inspire as much heated debate as alimony reform, a phrase that refers to efforts to update the laws in various jurisdictions that entitle financially dependent spouses to post-divorce support payments.

Alimony is often one of the final matters to be resolved in a divorce, along with asset division. It can serve as a proxy for dissatisfaction with other larger issues, complicating matters between the parties and sowing the seeds of discontent for many years post-divorce.

Alimony overhaul

Opponents of the longstanding system of spousal support payments successfully argued that the time had come to overhaul alimony law in the Garden State, resulting in the passage of a reform bill that took effect in September of 2014.

While much has been written about the new law’s passage, the judiciary will be working out the more nuanced details of the law for many years to come. There are many unanswered questions that will require judicial interpretation on a case by case basis.

Lifetime alimony payments remain a hot-button issue: Manny’s Problem

Lifetime alimony payments are the most controversial aspect of spousal support in New Jersey and other states with similar provisions. Opponents of lifetime alimony argued that such requirements represented onerous and punitive obligations that no longer reflect prevailing attitudes and public policy, going back to a time when most women didn’t work at all outside the home and men served as the primary breadwinners.

For example, I had a client named Manny who began paying alimony support to his ex-wife when he was in his late 50’s. He continued to pay alimony to his ex-wife into his 60’s, 70’s, and 80’s, even though I advised him that he should go to court to see if a judge would agree with me that it was time for his payments to stop. Our client was worried about upsetting his ex-wife and he didn’t want to take a chance with the court system. He kept on paying and paying and paying.

Similar cases and arguments persuaded New Jersey lawmakers to pass alimony reform legislation in 2014.

Duration of payments capped by new law

The new law represents the culmination of three years of lobbying by pro-reform groups and serves as the death knell for any new awards of lifetime alimony payments in this state. Under the new law, the term “open durational alimony” replaces “permanent alimony”, indicating that triggering events such as payers’ unemployment, payers’ disability, or recipients’ co-habitation with new partners are grounds for modification. Similarly, most payments moving forward will be limited to the length of marriages that lasted less than 20 years and will end completely when payers retire at age 66.

Prospective legislation will not apply retroactively, with two exceptions

While the New Jersey Legislature unanimously voted the new approach to alimony into law, the law will not modify previously binding agreements or orders. This aspect has some in the reform community contending that the bill did not go far enough. In most cases, the bill preserves judicial discretion, providing specific guidance for alimony in marriages of less than 20 years and requiring written explanations for judicial deviation from the presumptive template.

The new law will certainly be used in most cases where retirement is a basis to prospectively renegotiate or judicially modify alimony support, because the new law clarifies the relevant retirement factors and proofs, which will be used even in cases when the alimony agreement, court order, or final divorce judgment predated the new law. Similarly, the new law clarifies the rules surrounding cohabitation factors and proofs, which will be used prospectively in most cases, even with agreements, court orders, or final judgments that predate the new statute.

Conclusion

As in all areas of family law, it is wise for parties to consult with experienced legal counsel about their cases, circumstances, and concerns. Whether you are likely to be an alimony payer or receiver, you must know your rights; you must understand your responsibilities; you must have a basic familiarity with the law that applies; and you may need strong representation and advocacy to protect yourself.

Please take a look at our website to understand our approach to alimony, family law, and representation. Please give us a call if you think we may be helpful to you — or to anyone you know. You will be glad you did.