Can Spousal Support Be Modified Because of Retirement in New Jersey?

Many people approaching retirement age may wonder how their change in income will affect their alimony obligations. In New Jersey, retirement is recognized as a valid reason for spousal support to be modified or terminated, but the process involves specific rules and review by a state court. To learn more and secure skilled representation, reach out to a Morristown alimony attorney today.

What is Alimony?

Alimony, or spousal support, is a court-ordered payment from one spouse to the other after a separation or divorce. This financial support is designed to help the receiving spouse maintain a standard of living reasonably comparable to the marriage, to help them transition to financial independence, or as reimbursement for contributions made during the relationship.

Can Spousal Support Be Modified Because of Retirement in NJ?

Yes, spousal support can be modified or even terminated once the paying spouse reaches the age of retirement. In fact, under the New Jersey Alimony Reform Act of 2014, it is presumed that the alimony obligation will end at this time. The legislation states that “There shall be a rebuttable presumption that alimony shall terminate upon the obligor spouse or partner attaining full retirement age…”

Retiring before full retirement age does not automatically allow for the termination of alimony, however. Some individuals may retire early in an effort to shirk their responsibilities to their former spouse. If someone retires before 67 (the current retirement age for individuals born in 1960 or later), the court will examine the situation to determine whether retirement is reasonable and made in good faith.

Will Alimony Always End When the Paying Spouse Retires?

The presumption that spousal support will end when the paying spouse reaches retirement age can be overcome if good cause is shown, proving that the receiving spouse still needs the support. The court will consider the following factors.

• The ages of the parties at the time of the application for retirement
• The ages of the parties at the time of the marriage or civil union and their ages at the time of entry of the alimony award
• The degree and duration of the economic dependency of the recipient upon the payor during the marriage or civil union
• Whether the recipient has foregone or relinquished or otherwise sacrificed claims, rights or property in exchange for a more substantial or longer alimony award
• The duration or amount of alimony already paid
• The health of the parties at the time of the retirement application
• Assets of the parties at the time of the retirement application
• Whether the recipient has reached full retirement age as defined in this section
• Sources of income, both earned and unearned, of the parties
• The ability of the recipient to have saved adequately for retirement
• Any other factors that the court may deem relevant

The court will not always terminate alimony once the paying spouse retires, given that there is a valid reason the receiving spouse continues to need support. However, the obligation could be reduced to reflect the individual’s new financial situation and income.