Although some businesses are beginning to reopen following COVID-19 shutdowns, the pandemic has forced some in New Jersey into early retirement. This could affect alimony obligations. We recommend consulting with a Freehold alimony attorney before filing a request to end or modify your spousal support payments.
Earlier this year, an analysis by Allianz Life revealed more than half of all American workers would likely be pushed out of the job force for reasons beyond their control – a quarter of those being health reasons.
Since March, The New York Times reported jobless claims have reached nearly 40 million. Many will ultimately return to work, but millions of those may have no choice but to retire early (before the age of 65).
Anyone forced into or considering retirement is right to think about how to limit expenses – especially if they are responsible to make alimony payments.
Understand that New Jersey courts will not automatically approve an alimony modification or termination request just because you have retired – even if your circumstances have indisputably changed. The court will weigh whether you have reached the retirement age. If you are retiring early, the court will look at what control you had over that decision, whether it was reasonable and whether it was made in good faith.
Alimony Termination Upon Reaching Age of Retirement
New Jersey’s alimony law, N.J.S.A. 2A:34-23, indicates that alimony may be modified or terminated upon the prospective or actual retirement of the supporting spouse.
There is a rebuttable presumption that alimony will terminate upon the paying spouse reaching full retirement age – except any arrearages that may have accrued. In other words, if the paying spouse is old enough to retire, it is up to the dependent spouse to prove why they should continue to pay.
This rebuttable presumption can be overcome and payments may continue if the court weighs the following factors and finds good cause:
These and any other relevant factors should be considered.
However, if the paying spouse is seeking to retire and end alimony before reaching the full retirement age, then it is his/her burden to prove by a preponderance of the evidence that the retirement is reasonable and made in good faith.
Alimony Termination in Cases of Early Retirement
Courts want to make sure paying spouses aren’t vindictively retiring early just to cut off their former spouses from alimony payments. Factors to be considered in this case include:
If you intend to retire but have not yet, the New Jersey family court will establish conditions under which modification/termination can go into effect.
If you are not retiring, but the pandemic has resulted in a substantial loss of income, this too may be considered grounds for modifying and perhaps even terminating alimony payments.
Our alimony lawyers in Freehold can help answer your questions and advise you of your next best step. While social distancing guidelines remain in place, we offer video and telephone conferencing.
Contact us at (732) 377-3367 or email us through our website.
