Alimony

Alimony is the amount of money paid by one spouse to the other, during the course of divorce litigation and/or after a divorce. An alimony order is intended to allow both spouses to maintain a lifestyle comparable to that which they were accustomed to during the marriage. When calculating alimony, the court will examine many factors to determine a reasonable award amount. The goal is to limit the unfair economic effects that come with divorce. Without alimony, the lower-earning spouse would undoubtedly struggle more than the higher wage-earning partner -- leaving that spouse at a significant disadvantage.

An alimony calculation is not based on a fixed formula. Many factors, under N.J.S.A. A:34-23(b), are taken into consideration before a final figure is determined, including:

• The actual need and ability of the parties to pay;
• The duration of the marriage;
• The age, physical and emotional health of the parties;
• The standard of living established in the marriage and the likelihood that each party can maintain a reasonably comparable standard of living;
• The earning capacities, educational levels, vocational skills and employability of the parties;
• The length of absence from the job market of the party seeking maintenance;
• The parental responsibilities for the children;
• The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;
• The history of the financial or non-financial contributions to the marriage by each party including contributions to the care and education of the children and interruption of personal careers or educational opportunities;
• The equitable distribution of property ordered and any pay-outs on equitable distribution out of current income, to the extent this consideration is reasonable, just and fair;
• The income available to either party through investment of any assets held by that party; and
• The tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment.
• Any other factors which the court may deem relevant.

There are four different types of alimony that may be awarded in a divorce. The type of alimony that is awarded to a spouse is determined based on the length of time alimony is needed. The four types of alimony are: Permanent Alimony, Rehabilitative Alimony, Limited Duration Alimony and an award for alimony to reach an equitable result.

Permanent Alimony
Permanent alimony is intended to compensate a spouse for an economic dependence created by the marriage. The purpose of permanent alimony is to allow the supported spouse, after the divorce, to continue to live in the lifestyle to which he or she had been accustomed during the marriage to the degree possible. Usually, when the marriage was of long duration, and economic need is also demonstrated, the courts will entertain an award of permanent alimony.

Rehabilitative Alimony
Rehabilitative alimony is a short-term award. This type of alimony enables the former spouse to go back to school or obtain some type of job training that will enable him or her to re-enter the workforce. In many cases, rehabilitative alimony will consist of the non-dependent spouse paying for the college tuition or the job training expenses for the dependent spouse.

Limited Duration Alimony
Limited duration alimony, sometimes called "term alimony," is an award of alimony for a limited duration. Limited duration alimony is often awarded when the marriage was a short one or when a rehabilitative alimony award is not requested or appropriate, but the circumstances of the case justify some award of financial support.

Reimbursement Alimony
A reimbursement alimony award compensates one spouse for the financial contributions that he or she has made to the professional training or career development of the other spouse, thereby enhancing that spouse's future earning capacity.

Alimony Award to Reach an Equitable Result
In the interest of an equitable and reasonable result, courts may make alimony awards that combine the various categories. This determination is made on a case by case basis and as needed by the parties.

Filing a Notice of Motion to Enforce Alimony Agreements
To enforce an alimony agreement is to file a Notice of Motion for Enforcement with the court. If the non-paying party fails to comply with your court order or alimony agreement, they are violating the spouse’s legal right to receive payment.

Enforcing Alimony Agreements or Court Orders
Once you have filed a Notice of Motion for Enforcement of your alimony agreement, the court may seek to enforce your order in a number of ways. Wage garnishment is one of the most common ways to legally enforce an alimony agreement. While there may be limits as to how much income can actually be garnished, you may be able to obtain all of your unpaid alimony payments through this method.

Another way to enforce an alimony agreement or court order is through execution and sale. The local sheriff may seize and sell specific items in order to cover unpaid alimony.

Modification of Alimony
There are a number of occasions when you would need to help you modify alimony, reduce alimony, or end alimony payments. These occasions may include:

• Substantial involuntary decrease to your income
• Failure of a business
• Substantial increase to your spouse’s income
• Significant decrease to your overall total compensation package
• Recent retirement from your profession
• Spouse who has recently been remarried
• Major health problem that impairs earning ability
• Increases in the cost of living

The Burden of Proof
If you wish to pursue a modification or reduction of your alimony payments, you will need to prove that you have experienced a substantial financial change in circumstances that renders you unable to continue making your alimony payments as presently required. In general, the party who wishes to modify alimony, reduce alimony, or terminate the alimony payments bears the burden of proof.

When seeking an alimony modification, it is essential to demonstrate that you experienced a significant “involuntary” change in circumstances. The loss of a job may be significant grounds to modify alimony, especially if there is a significant health problem that prevents a supporting spouse from continuing his or her work.

Terminating Alimony Payments through Remarriage
If the spouse who is receiving alimony payments remarries, then alimony will automatically terminate. Once the supported spouse enters into a new marital partnership, the supporting spouse is no longer financially obligated to continue paying alimony even if the alimony originally awarded was designated as permanent alimony.