Alimony Modification and COVID-19

During the COVID-19 virus pandemic, many alimony payors are looking to modify and/or terminate their alimony obligations. For both, open durational alimony obligations and limited durational alimony payments, the economic climate is a time for potential downward modification. 

 

Alimony For Those Divorced Before September 2014

 

For those with divorce agreements entered before September 2014 who are seeking to terminate alimony due to retirement, the revised alimony law provides no advantage in seeking to terminate alimony payments, but can still be a basis for alimony termination. An alimony payor divorced prior to September 2014 forced into early retirement, even at Social Security retirement age, will have a more difficult time in seeking to terminate his/her alimony obligation. In that case, a modification will be a better option.

 

Alimony For Those Divorced After September 2014

 

For those with divorces entered after September 2014, retirement does not automatically result in the termination of alimony payments, but payors are given a slight advantage in seeking to terminate alimony payments. If an alimony payor who was divorced after September 2014 is forced into early retirement at a reasonable age (Social Security Retirement age), that individual will have a stronger case for alimony termination based on the revised alimony laws in New Jersey.

 

Successful Alimony Termination

 

As long as an alimony payor is not self-employed, an application to modify and/or terminate alimony can also be successful without retirement being involved. Once the virus spread has been slowed, those that want employment can seek a temporary modification under the alimony law.

 

Courts will consider various factors for such applications to modify alimony, including, but not limited to, the reasons for loss of income, the income and financial circumstances of the payee, and the health of both parties. The courts weigh a number of factors together, but no single factors dictate the outcome of applications to modify alimony under such circumstances. For example, even if a payor is out of work right now, the payee might also be unemployed, and may have no financial savings. In that case, the court might continue alimony payments even during the pandemic.

 

Automatic Alimony Termination

 

It is important to note that there is no such thing as automatic alimony termination or modification unless a divorce agreement sets forth a specific termination date. The payor must file an application with the court explaining the basis for the motion, and must list the relevant factors for alimony termination and/or modification. 

 

There are no guarantees with such applications to modify alimony, but with the uncertain nature of the economy, alimony modifications will likely become a more viable option for payors unable to meet their required monthly obligations.

 

To discuss any issues relating to alimony modification during the COVID-19 pandemic contact Siegel Law today.