How Do the Courts Determine Amount & Duration of Alimony Payments

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How Do the Courts Determine Amount & Duration of Alimony Payments

Jun 02, 2022

Going through a divorce remains a traumatic experience for both parties. Hurt feelings, court proceedings, and arguing with your spouse may cause a contentious situation. One area that stirs up these feelings and conflict is the subject of alimony payments. Who pays who, how much they have to pay, and for how long turns this into one of the most hotly contested issues in the divorce process.

It falls upon the courts to determine these finer details, but both parties have an important question: How do the courts determine alimony payments? It is a complex and nuanced answer that changes on a case-by-case basis, but there are certain factors that courts consider when choosing alimony payments, which will be discussed below.

The Different Types of Alimony

Divorce attorneys will let their clients know about the different types of alimony that can be awarded in the state of New Jersey. Among the different types of available spousal support include:

Pendente Lite (pending the litigation of the divorce)
Limited duration
Rehabilitative
Reimbursement
Open-durational

Each type of Alimony has diff erent requirements, durations, and other factors that determine how law firms and courts determine alimony payments.

Factors to Determine Alimony in New Jersey?

While any party involved in a divorce can be awarded alimony, the courts will grant it to those who meet certain factors. Among these factors that the courts take into account include:

The actual need and ability of the parties to pay.
The duration of the marriage.
The parties’ age, physical and emotional health.
The standard of living established in the marriage. This includes the likelihood that each party can maintain a reasonably comparable standard of living.
The earning capacities, educational levels, vocational skills, and employability of the parties.
The length of absence from the job market of the party seeking maintenance.
The parental responsibilities for the children.
The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment. This creates the opportunity for future acquisitions of capital assets and income.
The history of the financial or non-financial contributions to the marriage by each party. Contributions include the care and education of the children and interruption of personal careers or educational opportunities.
The equitable distribution of property and any payouts on equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just and fair.
The income available to either party through investment of any assets held by that party.
The tax treatment and consequences to both of any alimony award including the designation of all or a portion of the payment as a non-taxable payment.
The nature, amount, and length of pendente lite support paid.
Any other factors which the court may deem relevant.

Gross Incomes of Both Spouses

New Jersey currently does not have an official formula for determining how much alimony is awarded during a divorce as opposed to the Child Support Guidelines in determining child support. However, most divorce lawyers in Burlington County, NJ, will utilize gross incomes of both spouses, calculate the difference, and then award the payee spouse around a quarter of the difference in the incomes. You also want to ensure that payments are payable through probation for enforcement purposes.

Determining the Duration of the Payments

When it comes to figuring out how long one spouse has to pay alimony, a few determining factors are considered. Throughout the duration of the divorce proceedings, the judge may award a pendente lite alimony that ends once the divorce is finalized and a more definitive alimony structure is reached. Our firm can help you determine how long your alimony payments should last — whether receiving or paying — and help ensure that it meets your needs and budget.

In New Jersey, if the spouse receiving alimony enters a civil union or gets remarried, the alimony shall be terminated effective the day of the remarriage. If you do not notify the other party of the remarriage immediately, you risk paying attorney fees and court costs to the paying spouse. Alimony also terminates upon the death of either party.

Can Alimony Payments Be Modified at a Later Date?

Life happens, circumstances change, and the unpredictability of everyday life can drastically affect a person’s ability to provide. Making changes to alimony payments is not unheard of, but they require specific language into your Agreement. Temporary unemployment is not a reason for the Court to grant a change in alimony. However, disability, normal retirement age or a substantial change in income, may be reasons to terminate and/or modify the alimony award.

If you believe you are entitled to a modification, you should first attempt to resolve the issue with your ex, by and between counsel. If that is unsuccessful, you may file a Motion with the Court requesting the relief sought. You will need to show that circumstances significantly changed since the original ruling or agreement between the parties.

Securing Alimony with Life Insurance

When alimony is agreed upon or court ordered, the paying spouse shall maintain a life insurance policy securing the duration and amount of the alimony. The policy should name the payee as beneficiary of that policy and the payor shall provide proof of life insurance on an annual basis. If it is for a limited duration, the paying spouse shall be entitled to reduce the policy each year.

Turn to Berg & Pearson, P.C. for Help With Your Upcoming Divorce

When it comes time to go through your divorce, you want a law firm on your side that keeps your best interests at heart and will fight for you. Whether you have to make alimony payments or entitled to receive alimony payments, our divorce attorneys in Mount Laurel, NJ, are ready to help! Contact our office for a free consultation by phone or Zoom and learn how we can help!

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