When can alimony be modified or terminated
Many divorce settlements center around the alimony provisions. Alimony provides a spouse with the means to keep their quality-of-life post-divorce. There are multiple factors that determine the amount and length of alimony. However, these agreements are not set in stone. Under New Jersey law, alimony can be modified or even terminated if there are significant circumstances that affect the financial situation of either party.
The case of J.D. v. C.D. emphasizes important elements Judges consider when assessing requests for alimony adjustments. In this case, the payor, C. D., was discharged from his high paying job ($750,000 per annum) and had a hard time trying to find comparable employment. He argued that his financial situation had drastically changed, and sought to terminate his permanent alimony obligation. After reviewing the details, the court agreed, considering the loss of his high paying job and the consequent financial impact, which changed the conditions compared to when the alimony was created.
This brings up the question, when can alimony be modified or terminated? One situation in which alimony can be modified or terminated is when the payor loses his/her job and their new salary is drastically different. This is seen in J.D. v. C.D. where the payor lost his high paying job and alimony was terminated. The payor must demonstrate that he made reasonable efforts to find comparable employment. In J. D. v. C.D., reasonable efforts were made by the payor after he was discharged. He was able to generate an income of around $130,000 by teaching finance courses at colleges and revenues from books he authored. While doing this, he used the help of a re-employment expert to find comparable employment. C.D. made over a thousand phone calls to banks and other financial institutions in search of a job. This helped the court understand his efforts and led to the termination of alimony.
In addition, the wife’s situation changed from a low wage situation of about $30,000 to a nurse position of about $100,000.
Cases such as J.D. v. C.D. help exemplify how certain changes in one or both parties’ situation can lead to termination or modification of alimony.