How Much Alimony Will I Get in NJ?

How Much Alimony Will I Get in NJ

One of the most frequently asked question I get during consultations is “How much alimony will I get in NJ?”  Like many aspects of family law, there’s never an easy answer.  That’s because each case is so unique that it would be near impossible to have one rule that would work for every alimony case in New Jersey.  I’m constantly amazed at how different each and every case truly is. Let me explain some of the most important aspects of New Jersey alimony laws.

How Is Alimony Decided in New Jersey?

Rather than focusing on “how much alimony will I get in NJ?”, instead it helps to understand how alimony is decided.  If you mediate or negotiate your case, you and your spouse will decide.  You will work together (hopefully) with your attorneys or mediator to see what makes sense for your particular situation.  You will decide whether alimony is appropriate, how much, and for how long.  There are many options you can agree to in terms of how alimony is paid, like one spouse “buying out” the other by giving an asset away instead of paying alimony.

If you decide to litigate your divorce case (meaning taking your case to court for a trial), a judge will decide whether there should be alimony, how much, and for how long.  A judge must use New Jersey’s alimony statute and look to previously decided cases (called precedent, or case law) to make his or her decision.   Judges have much less authority to be creative in how alimony is paid because Judges must follow the law. They have no choice.  If you agree on alimony privately, you can provide for things that would not otherwise be available to a judge.  But even during amicable divorces, you should look to NJ alimony law for guidance.

 New Jersey’s Alimony Statute

The New Jersey alimony statute provides for four types of alimony including open duration, limited duration, rehabilitative, and reimbursement.  Whether one party should pay or receive alimony, and how much alimony should be paid, is decided by analyzing these thirteen factors:

(1)     The actual need and ability of the parties to pay;

(2)     The duration of the marriage or civil union;

(3)     The age, physical and emotional health of the parties;

(4)     The standard of living established in the marriage or civil union and the likelihood that each party can maintain a reasonably comparable standard of living;

(5)     The earning capacities, educational levels, vocational skills, and employability of the parties;

(6)     The length of absence from the job market of the party seeking maintenance;

(7)     The parental responsibilities for the children;

(8)     The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;

(9)     The history of the financial or non-financial contributions to the marriage or civil union by each party including contributions to the care and education of the children and interruption of personal careers or educational opportunities;

(10) The equitable distribution of property ordered and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair;

(11) The income available to either party through investment of any assets held by that party;

(12) The tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment; and

(13) Any other factors which the court may deem relevant.

The court does not have to give equal weight to all of the factors. It can determine which factors are the most important when making a decision.

Types of Alimony in New Jersey

New Jersey family courts may award one or more of the following types of alimony:

• Open duration – Open duration alimony, formerly known as “permanent alimony,” continues for an unspoken duration. This type of alimony is more common in cases in which a supported spend in a long-term marriage was unlikely to ever become financially independent. There is no set time limit for this type of alimony to stop. New Jersey courts can only award this type of alimony if the marriage was for at least 20 years, unless exceptional circumstances exist.

• Limited duration – Limited duration alimony sets a specific time period for alimony to be paid, such as five years or six months. This type of alimony is intended to help a supported spouse become financially independent. There is a specific end date, which must be for a term no longer than the length of the marriage, unless exceptional circumstances exist.

• Rehabilitative – Rehabilitative alimony is intended to rehabilitate a supported spouse so that they can rejoin the workforce. This type of alimony is often awarded when a supported spouse needs additional schooling or skills to reintegrate into the workforce. Rehabilitative alimony may cover costs of tuition, training, and living expenses during the rehabilitative period.

• Reimbursement – Reimbursement alimony compensates a spouse for the financial contributions they made toward their spouse’s education or career advancement. It is more common when there is little basis for open duration or durational alimony. Reimbursement alimony may include the contributions the spouse made toward schooling, training, other costs associated with obtaining a degree or training, and the costs of living expended during the time the spouse was improving their education or career.

Additionally, New Jersey courts sometimes award temporary alimony, or pendente lite alimony. This type of alimony is paid while the divorce action is pending and helps maintain the status quo during this time. This type of alimony terminates automatically when the divorce becomes final, but it can be replaced with the other types of alimony described above.

Length of Alimony

After the court determines to award alimony based on the factors described above, it will determine how long alimony payments should continue. The length of the marriage is usually an important factor when making this decision. There is no specific length of a marriage that forms an obligation for alimony to be paid. However, if the marriage was for less than 20 years, alimony cannot last for longer than the length of the marriage unless exceptional circumstances exist. For example, if a couple was married for 10 years, if alimony is awarded, it can only be awarded for up to 10 years, in most cases. A common rule of thumb (though not mandatory) is for alimony to be paid for half the length of a marriage.

Alimony may end upon a change of circumstances, such as:

• Remarriage of the supported spouse
• Cohabitation of the supported spouse
• Retirement of the obligated spouse
• Death

The obligated spouse may be required to maintain a life insurance policy for the value of future support payments to protect the supported spouse.
However, the alimony award has the final say on the matter.

Temporary alimony does not last past the divorce order. However, there is no hard and fast rule for how long it will last. Its length depends on the specific facts of the case.

Tax Treatment of Alimony

After the Tax Cuts and Jobs At, there is no federal tax benefit of paying alimony. Alimony is neither tax-deductible nor taxable for any alimony payments made pursuant to a court order after this law became effective.

However, alimony payments are deductible for state income tax purposes. Alimony recipients must report these payments on their New Jersey state income tax returns.
Enforcement of New Jersey Alimony Orders

Alimony awards are court orders. If you were awarded alimony but your ex refuses to pay it, you can file a motion with the court to enforce the order. Through this type of legal action, you can ask the court to make your ex pay the money they owe in one lump sum, garnish your ex-spouse’s wages, or issue a warrant for their arrest. The judge will determine what sanctions are appropriate based on the specifics of your case.

Consult With Professionals

Alimony law is complicated and these factors can get confusing. For example, a case that involves self-employment can make it difficult to ascertain a person’s income – especially if it’s a cash business. A person can be considered underemployed, so an income must be imputed to that person. Sometimes people become disabled before or during a divorce, and do not earn anything near what they did during the divorce.

In all cases, especially complicated ones, the most important thing to do is hire a family law professional to walk you through the entire process. You should work with trusted attorneys, accountants, and financial advisers who have your long term interests in mind. Spending money on professionals now may end up saving you a fortune in the long run.

Instead of wondering “How much alimony will I get in NJ?,” make the decision to meet with a professional. I can help determine what alimony obligation you might be required to pay or might be entitled to receive. I’m always happy to meet with potential clients for a free consultation.

Contact Andrew R. Fischer : Family Lawyer today to set up your appointment and discuss your potential alimony case.