Alimony Statute Amendments From 2014 Can Be Applied To Divorces Finalized Years Earlier

Today’s current economic reality is one of great uncertainty, especially when it comes to employment. Employees who could count on receiving an annual cost of living adjustment or performance bonus no longer have that luxury, nor the security that their years of experience and training will translate into an equal or higher-paying position should they lose their job. These realities of employment cut across the entire New Jersey labor market, yet they have an even deeper impact when faced by divorced individuals with existing alimony obligations.

Alimony, which is sometimes referred to as spousal support or maintenance, is defined as the obligation upon one spouse to provide financial support to his or her spouse before or after marital separation or divorce. In 2014 the New Jersey Legislature passed, and the Governor signed, an alimony reform bill which “modernized” how alimony awards are to be calculated. One change in the new alimony statute deals with how judges can interpret cases where the payor of alimony attempts to lower or all together eliminate their alimony obligations due to job loss.

Recently, a Superior Court judge in New Jersey rendered a decision effecting thousands of divorced spouses in our state. The judge’s ruling confirmed for the first time that the 2014 alimony overhaul would not just apply to individuals divorced since the revisions were enacted two years ago, but to all divorced individuals currently paying or receiving alimony.

In Mills v. Mills the Court reviewed a petition made by the supporting spouse (the payor of alimony) to reduce their alimony obligation due to the loss of long-term employment and the acceptance of a new position at a considerably lower salary. The Court granted the petition to reduce the alimony obligation and held that under the 2014 amendments to the alimony statute, the family court has the authority to reduce alimony obligations when the supporting spouse loses their employment and has made reasonable attempts to find alternative employment. The interesting thing about the Court’s decision is that the Mills were divorced in 2013, one year before the alimony revisions were signed into law.

The Court in in Mills found that judges have the authority to apply both the spirit and terms of the 2014 amendments to the alimony statute, even when the individuals had a final divorce order entered before 2014, so long as there is no written agreement applying a different standard in place, and the issue has not been litigated and already adjudicated by the Court. In so doing, the Court determined who could avail themselves of the remedies written into the new statutes. The Judge in Mills acknowledged that changes often occur in the employment status of individuals after they are divorced. This has become a more common occurrence over the past several years with the economic downturn and static recovery which has affected tens of thousands of individuals. The Judge specifically referred to the “harsh present day reality” which exists for many people who have lost their jobs and may never regain their former earning level.