Reviewed by Dominic A. Tomaio, ESQ.
Key Takeaways
- Alimony may be modified or terminated on retirement under N.J.S.A. 2A:34-23(j).
- Three standards apply, based on the order date and whether you retire early.
- For post-2014 orders, alimony is presumed to end at full retirement age.
- You can seek a ruling 12 to 18 months before retiring, with a detailed plan.
- Remarriage or death also ends alimony under N.J.S.A. 2A:34-25.
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. In New Jersey, alimony payments can be modified or terminated on the prospective or actual retirement of the paying spouse in accordance with N.J.S.A 2A:34-23(j). Orders entered after September 10, 2014 have a rebuttable presumption that alimony will end at full Social Security Retirement age (67 for most), while the recipient bears the burden of proof to show that payments should continue. Early retirement and pre-2014 orders adhere to different standards, and the paying spouse may seek an advance ruling before actually retiring. 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.
The Three Retirement Standards Under N.J.S.A. 2A:34-23(j)
It’s important to understand that the termination provision is not a singular rule, as New Jersey will apply one of three different standards, depending on when your alimony order was entered and the age at which you retire:
- Full retirement age, post-2014 orders (subsection j(1)): Alimony orders entered after September 10, 2014 have a rebuttable presumption that the obligation will end once the paying spouse reaches full retirement age. If the recipient spouse believes alimony should continue, they bear the burden of proof.
- Early retirement (subsection j(2)): If you retire before full retirement age, the rebuttable presumption will not apply. As the paying spouse, you must prove, by a preponderance of the evidence, that your retirement is reasonable and in good faith.
- Pre-2014 orders (subsection j(3)): For orders entered before September 10, 2014, there is no rebuttable presumption of termination. Reaching full retirement age is treated as a good-faith retirement age, and the court weighs the situation without shifting the burden onto the recipient.
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.
Can I Ask the Court to Rule Before I Actually Retire?
Yes, in fact, one of the most practical features of this retirement provision is that you do not have to leave your job and hope for the best. This statute allows the paying spouse to seek a ruling on the prospective retirement, and the case of Mueller v. Mueller impacted this statute:
- You can file in advance: Pursuing an advance ruling can help you avoid a paradox where you would have to quit your primary income prior to knowing if your alimony will change.
- Timing matters: In the Mueller ruling, an application filed about five years prior to the planned retirement was rejected as premature. Instead, the court ruled that a more appropriate window is approximately 12 to 18 months prior to the intended retirement date.
- Bring a detailed plan: An advanced application should include the proposed date of retirement, as well as how you plan to support yourself after your retirement, so the court can realistically assess the financial impacts.
What Other Events Automatically Terminate Alimony?
It’s important to understand that retirement is not the only path to end an alimony obligation. In accordance with N.J.S.A. 2A:34-25, certain events may end your legal obligation, regardless of the age at which you retire:
- Remarriage or a new civil union: The remarriage of the recipient spouse will automatically terminate any open durational or limited duration alimony, though it will not automatically terminate rehabilitative or reimbursement alimony obligations.
- Death of either party: The alimony obligation will end following the death of either paying or receiving spouse.
- Reaching the set term: For fixed-term alimony awards, the obligation will end on a predetermined termination date or when the balance is paid in full; parties may sometimes agree to settle the remaining balance early.
The Types of Alimony This Applies To
Which rules govern your case depends partly on the type of alimony you pay. New Jersey recognizes four statutory types under N.J.S.A. 2A:34-23(b):
- Open durational alimony: This is reserved for marriages that have lasted more than 20 years. Though there is no predetermined end date, this is the type of alimony most directly impacted by the retirement presumption.
- Limited duration alimony: Used for shorter marriages, with a set end date that generally cannot exceed the length of the marriage.
- Rehabilitative alimony: This type of alimony is intended to serve as support for a spouse while they undergo training or education to receive financial independence
- Reimbursement alimony: This serves to compensate a spouse who supported the other through advanced education, and cannot be modified in accordance with New Jersey statute
Separately, temporary or pendente lite alimony can be paid during the divorce itself, but it ends automatically once the divorce is finalized.
Contact Our Experienced New Jersey Divorce Firm
At Townsend, Tomaio, Newmark & Clancy, we understand how overwhelming these matters can be to navigate. That is why our firm is ready to represent you. Contact us today to learn how we can assist you during these difficult times.
