Reviewed by John E. Clancy, ESQ.
Key Takeaways
- New Jersey recognizes four statutory alimony types under N.J.S.A. 2A:34-23(b), plus temporary pendente lite support.
- Open durational alimony is reserved for marriages of 20 years or more.
- For shorter marriages, alimony generally cannot exceed the marriage length.
- There is no formula; courts weigh statutory factors instead.
- Remarriage, death, or cohabitation can end alimony, and NJ tax rules differ from federal.
Understanding the different types of alimony that are recognized under New Jersey law is important for all spouses considering divorce. The state recognizes four statutory types of alimony in accordance with N.J.S.A. 2A:34-23(b). This includes open durational, limited duration, rehabilitative, and reimbursement alimonies. During the divorce itself, the courts can order temporary alimony, known as pendente lite. It is also important to understand that there is no fixed formula used by the courts to calculate alimony, as this matter is based on statutory factors. For more information, schedule your free case evaluation with a Morris County, NJ alimony and spousal support lawyer today.
What Is Alimony?
Alimony is a form of financial support provided by one spouse to the other during and after their divorce. Also referred to as spousal support or maintenance, alimony is designed to help a lower-earning spouse maintain financial stability and transition into their new life without facing undue hardship.
A court may require alimony if one spouse makes significantly more than the other, the supported spouse made financial or other sacrifices for the relationship, or to help them while they attempt to find work or a higher-paying job. Depending on the details and circumstances of the marriage and divorce, New Jersey courts are authorized to impose one or more of several types of alimony.
What Types of Alimony Are Recognized in NJ?
If you are getting a divorce in New Jersey, it is important that you are informed about all of your rights, including whether you will pay or receive alimony. Below are the types of alimony recognized under N.J.S.A. 2A:34-23.
- Pendente lite: Pendente lite is a type of financial support required for spouses during the separation or divorce process. It allows a lower-earning spouse to maintain their lifestyle and afford legal representation during the divorce process, but it is terminated as soon as the marriage is officially over.
- Limited duration alimony: Limited duration alimony is support that is paid for a specific amount of time and is designed to help a spouse who was previously financially supported become independent.
- Open durational alimony: This type of spousal support was once referred to as “permanent” alimony. When a court orders open durational alimony, it has no end date and can continue for the rest of either spouse’s life. Marriages that last for 20 or more years are eligible for open durational alimony as it exists for spouses who are unlikely to become fully self-reliant.
- Rehabilitative alimony: Rehabilitative alimony is exactly as it sounds: financial support that rehabilitates a spouse as they re-enter the workforce. It provides them with the ability to obtain the necessary tools to become financially independent, like attending higher education, training, and covering household expenses while they work towards their goal. Rehabilitative alimony is set by the court for a specific period of time.
- Reimbursement alimony: This type of alimony acts as a way to repay one spouse for contributions that they made to the marriage or their spouse. For example, suppose one spouse paid for the other’s higher education, which in turn earned them a higher income. During the divorce, the spouse who supported the other can be reimbursed for the money or time they sacrificed.
How Long Can Alimony Last?
The duration of alimony will heavily depend on how long the marriage lasted. Similarly, a 2014 reform impacted the limits on the duration of this support:
- Marriage of 20 years or more: Marriages lasting 20 or more years are the only type of marriage eligible for open durational alimony, which has no fixed end date. However, it remains open to modification and termination as necessary.
- Marriages under 20 years: The total duration of alimony typically cannot exceed the length of the marriage. For example, if the marriage lasted 10 years, alimony generally will not be awarded for longer than 10 years.
- The exceptional-circumstances exception: Ultimately the court retains the right to exceed the marriage-lenght cap if exceptional circumstances that are not rigidly defines by the statute arise. As such this discretion will be left to the judge to determine based on the specific circumstances.
How Do Courts Decide the Amount of Alimony?
New Jersey has no alimony calculator or fixed formula. Instead, under N.J.S.A. 2A:34-23(b), the court weighs a list of statutory factors and decides how much weight each deserves. Key factors include:
- The financial needs of the recipient spouse and the ability of the paying spouse to meet these obligations
- The marital standard of living established during the marriage
- The length of the marriage
- The age and health of each spouse
- The earning capacity, education, and employability of each spouse
- Whether or not one spouse stepped away from the job market to support the career of the other
- Parental responsibilities, the equitable distribution of property, and the tax consequences of any alimony award.
What Is the Tax Treatment of Alimony in New Jersey?
It’s important to understand that alimony taxation has changed considerably, and federal and New Jersey rules are no longer the same. This is often one of the most overlooked issues during a divorce:
- Federal rule (post-2018 agreements): Under the federal Tax Cuts and Jobs Act, for divorce or separation agreements executed after December 31, 2018, alimony is not deductible by the paying spouse and not taxable to the recipient.
- New Jersey rule: The state did not adopt the federal change. On a New Jersey return, the paying spouse may still deduct alimony, and the recipient must still report it as income.
- Older agreements: Agreements finalized on or before December 31, 2018 will typically adhere to prior federal rules, unless the agreement has been modified to adopt new treatment.
When Does Alimony End?
It’s critical to understand that, despite having open durational alimony, no type of alimony is absolutely permanent. Beyond reaching the end of fixed term, alimony awards may be modified or terminated when substantial changes in circumstances arise.
- Remarriage or death: Alimony will be automatically terminated in the event that the recipient spouse remarries (applicable to open durational and limited duration alimony) or upon the death of either party.
- Cohabitation: In accordance with N.J.S.A 2A:34-23(n), the court may suspend or terminate an alimony obligation if the recipient spouse enters a cohabiting relationship. The couple does not need to share a single household for the court to find cohabitation.
- Retirement or changed circumstances: The court may modify or terminate alimony if the paying spouse retires, or if there is a substantial change in the financial status of either spouse.
Contact Experienced New Jersey Divorce Attorneys Today
If you are seeking alimony during your divorce, it is important that you understand all of your rights and the legal options available to you. For more information, contact a skilled attorney at Townsend, Tomaio, Newmark & Clancy, LLC today.
