Thursday, September 10, 2015

Alimony Reform: One Year Later

On September 10, 2014, exactly one year ago today, New Jersey's Alimony statute was amended.  There were two big changes; the first was the elimination of "permanent" alimony to what is now termed "open durational" alimony.  The second big change was the addition of a provision that alimony may be suspended or even terminated in the event the payee cohabits with another person.

In ruling on a request for alimony, the court will review and analyze at least fourteen different factors.  One of the factors is the length of the marriage.  For any marriage less than twenty (20) years in duration, the total duration of alimony shall not, except in exceptional circumstances, exceed the length of the marriage.  Many people mistake this to mean, for example, that a marriage of 7 years equals 7 years of alimony.  In fact, what the statute says is that alimony shall not exceed 7 years, and it could be less.  For marriages 20 years and over, it becomes more complicated.  Most practitioners will counsel their client to expect to pay alimony for at least 20 years; maybe longer.  Open durational alimony does not have a specific end date.  Indeed, it could very well be permanent.

The cohabitation revision was a much applauded change.  Most people know someone who tells their horror story of continuing to pay alimony to their ex-spouse while the ex has entered into a new relationship. The typical story line involves the ex living with their new love, displaying their affection for one another to the world, and presenting themselves as a much in-love happy pair.  Yet, they stop short of  marriage in order to keep the alimony paycheck rolling in.  Under the Alimony Reform Act, cohabitation is much more than a spring fling.  There are seven different factors that a court will evaluate in determining whether cohabitation is occurring; among them is whether the couple has intertwined their finances, shares household chores, and any indicia of a "mutually supportive intimate personal relationship".  A finding of cohabitation can result in the termination, or at least suspension, of the alimony obligation.

For more detailed information on your rights and obligations for alimony, schedule a consultation.  I can be reached at 609-601-6600.  

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Best,
Stephanie

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