Does a Retired Spouse Have to Pay Alimony in New Jersey?

When one party reaches retirement, they may worry about their ability to make ends meet once they stop working if they are also responsible for making alimony payments to their ex-spouse. It’s important to understand, however, that retirement will not automatically stop alimony, though you may be able to apply for a modification or termination of spousal support on the grounds of retirement. Our Morristown alimony attorneys are ready to help if you or your retired expanded and reformatted “can” h2 w/h3spouse wants to make any changes to your arrangement.

Can a Retired Spouse Modify an Alimony Agreement in NJ?

In New Jersey, retirement can be cited as a reason to seek a modification of your spousal support orders, whether it is to reduce or terminate payments. However, it’s important to understand that the change must be substantial for the court to agree to modify the order.

When Retirement is a Valid Basis to Seek Modification

• You have sustained a substantial and permanent reduction in income due to retirement
• The retirement was in good faith (not simply to avoid alimony)
• Your retirement is consistent with industry norms, or you reach retirement age
• There is a change in your ability to support your prior payment level

When Modification or Termination May Be Denied

• Early or voluntary retirement without justification
• There is no change in your ability to make payments
• The supported spouse still demonstrates financial needs
• Evidence that retirement was entered to evade support obligations

Types of Outcomes the Court May Order

• Reduced monthly payments
• Temporary adjustment
• Full termination in some instances

What Factors Will New Jersey Courts Consider at Retirement

When a spouse reaches retirement and seeks a modification, the court will not simply accept retirement as a reason to terminate payments. As mentioned, the retirement must be in good faith. However, there are a significant number of factors that must also be taken into consideration before issuing a decision.

Core Factors Commonly Evaluated by the Court

• The age of both spouses
• The health of both spouses
• Whether the retirement happened earlier than the original alimony agreement expected
• How the retirement will affect the financial health of both spouses
• Whether the retirement of the paying spouse was mandatory or voluntary
• Additional income from pensions, investments, and Social Security
• The post-retirement budget of each spouse

Employment and Industry-Specific Considerations

• If early retirement is the professional norm (often seen in public safety, law enforcement, and military careers)
• If continued employment would substantially increase retirement benefits
• If working longer would be unreasonable or unsustainable

Expectations Established During Marriage

• If retirement was discussed or planned during the marriage
• Whether or not the divorce agreement anticipated retirement
• If the divorce settlement predates New Jersey’s 2014 alimony statute update (added a presumption that alimony would end at full retirement age, though the court reserves the right to continue payments)

Does Alimony Automatically End at Full Retirement Age in New Jersey?

Unfortunately, many people assume alimony payments will automatically stop once they reach full retirement age, which is generally 67 years old. However, it’s critical to understand that this is not the case, and the court must examine factors to determine whether or not alimony will end.

When Courts Are Likely to Terminate Alimony

• A spouse retires at or near full retirement age
• There is a substantial drop in income and earning capacity
• The supported spouse has become financially independent

When Courts May Continue Alimony Post-Retirement

• The supported spouse remains financially dependent
• There is a large income disparity
• Retirement is significantly earlier than anticipated

Documentation That May Be Beneficial

If you are looking to retire and subsequently reduce or terminate your alimony obligations, the court will often rely on the following documentation when making a decision:

• Retirement statements
• Pension benefit records
• Social Security documentation
• Pay stubs showing reduced earning capacity
• Medical or occupational records (for health-related retirement)

Can a Spouse Seek a Modification Before They Retire?

If you are approaching retirement, you may wonder if you can petition the court to reduce or terminate your alimony payments before you formally retire. In general, this will depend on the unique circumstances of your situation.

Situations Where Pre-Retirement Filing May Be Appropriate

• Mandatory retirement is approaching
• The paying spouse’s employer has issued an incentive package
• Occupational limits show an inability to continue working
• The parties wish to resolve this matter prior to retirement

What Courts Wish to See

In the event a party wants to modify their alimony obligation prior to retirement, the court will generally want:

• Credible evidence that retirement plans are definitive
• Post-retirement income budgets
• Explanations of why continued work is not reasonable

Contact Our Morris County Family Lawyers

If you or your retired spouse wants to change your alimony agreement, make sure that you have an experienced attorney on your side. At Lazor Rantas, PC, our team will examine your unique circumstances to help determine the best course of action for all parties involved. Contact us today to schedule a consultation with our team to learn more about how we can be of assistance.