Alimony is a form of financial support one spouse may be ordered to pay the other after a separation or divorce. There are several types of alimony, also referred to as spousal support, and each is generally designed to ensure the divorce does not financially devastate one party. While alimony is often required, the obligation can be modified or even terminated if the paying spouse were to retire. Continue reading for more information and speak with a knowledgeable Morris County, NJ alimony modification attorney today.
Can My Alimony Be Modified When I Retire in NJ?
According to New Jersey Revised Statutes 2A:34-23, “Alimony may be modified or terminated upon the prospective or actual retirement of the obligor.” Essentially, yes, it is possible that your alimony agreement will be modified when you retire. However, it is important to understand that this is not an absolute guarantee.
Alimony agreements are court-ordered during a divorce, and the terms are legally enforceable. However, the state recognizes that life circumstances change over time, and what once worked or was reasonable for both parties may not always be suitable. Retirement is considered a significant life change that can be used as the basis for changing or terminating alimony.
Will Alimony Be Modified or Terminated Because of Retirement?
As established, retirement can be a valid reason to modify the terms of an alimony agreement. However, whether or not the financial obligation will be altered depends on the details of the circumstances. According to state law, there is a rebuttable presumption that alimony will terminate once the paying spouse reaches full retirement age. However, this presumption can be overcome depending on certain factors, such as the following.
- The ages of the parties at the time of the application for retirement
- The ages of the parties at the time of the marriage, and their ages at the time of entry of the alimony award
- The degree and duration of the economic dependency of the recipient during the marriage
- Whether the recipient has foregone, relinquished, or otherwise sacrificed claims, rights, or property in exchange for a more substantial or longer alimony award
- The duration or amount of alimony already paid
- The health of the parties at the time of the retirement application
- Assets of the parties at the time of the retirement application
- Whether the recipient has reached full retirement age
- Sources of income, both earned and unearned, of the parties
- The ability of the recipient to have saved adequately for retirement
- Any other factors that the court may deem relevant
If it is determined that the paying spouse has retired in good faith and that it would be reasonable to the receiving spouse for the alimony obligation to be reduced or terminated, the court will generally approve a modification.
However, if the paying spouse retired early or in an effort to shirk their responsibilities to their former spouse, or if the receiving spouse is still dependent on the support, the request could be denied, and alimony may continue.
