December 12, 2011

Will New Jersey Follow Massachusetts’ Lead in Alimony Reform?

At least one private New Jersey citizens group is working toward making sure the words “till death do us part” refers to marriage and not alimony payments. The group, New Jersey Alimony Reform, is hoping State lawmakers can be persuaded to follow the example set by Massachusetts earlier this year and reform New Jersey’s alimony laws. (1)

Laws affecting the award and calculations of alimony payments vary from state to state. (2) If you have questions regarding New Jersey’s current alimony laws, particularly in Hunterdon County, contact the divorce lawyers at The Rotolo Law Firm in Lebanon, NJ.

This past fall, Massachusetts’ governor signed into law reforms that would eliminate lifetime alimony. Now, New Jersey and Florida are considering similar changes. (1)

Alimony, also known as spousal support, is intended to ensure that both parties can continue a lifestyle similar to the one they enjoyed while married. For the most part, New Jersey’s current alimony laws were written at a time when traditional roles of bread-winner and homemaker were more prevalent and were intended to ensure neither spouse was left destitute once the marriage ended and that the spouse who put family before career was compensated fairly.

There are currently four forms of alimony: permanent, lump sum, temporary and rehabilitative. It is the permanent alimony that currently is under fire. (3)

New Jersey Alimony Reform wants lifetime or permanent alimony eliminated. Instead the group wants terms of alimony awards to be legislated so that the awards are more equitable and fair to both the payor and the recipient. (1)

One of the problems with permanent alimony is that it does not allow for adjustments when the income status of either party changes. Couples find themselves going back to family court to plea for a change in the award to meet their changing needs or abilities, thus prolonging a relationship that should have ended some time ago. (2)

New Jersey Alimony Reform has been collecting stories that illustrate the inequities in the State’s current law. One such story involved a Hunterdon County man who was ordered to pay alimony in the amount of $4,000 per month at a time when his business was going strong. However, when the recession hit in 2008, his business began to flounder and, although he attempted to have the alimony award adjusted to reflect the change in his income, he was rejected – three times. (2)

One bill before the state Legislature has provisions to protect both parties in an alimony issue. The bill, sponsored by Sen. Sean T. Kean (R-Monmouth) would allow for alimony payments to cease once the payor’s income is reduced because of certain factors including unemployment, retirement, temporary disability or like conditions. Sen. Kean’s bill would also protect against the payor deliberately altering his or her income to avoid alimony payments. (1)

The senator plans to reintroduce his bill, which has been in the works for four years, next year hoping it will gain more attention in light of current economic conditions and the precedent set in Massachusetts. (1)

If you or someone you know has an issue with alimony payments in Hunterdon County, contact the divorce lawyers at the Hunterdon County-based law firm - contact The Rotolo Law Firm, in Lebanon, NJ.

(1) http://www.thedailyjournal.com/article/20111205/NEWS01/312050028/Alimony-reforms-NJ-proposed

(2) http://www.huffingtonpost.com/elizabeth-benedict/alimony-reform-sweeps-the_b_1088169.html

(3) http://www.divorcehq.com/alimony.shtml


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November 12, 2011

Increase in Income Following Separation Can Be Considered When Determining Alimony Payments

When a couple comes to an agreement to terminate their marriage, getting a court to make it official usually is not an issue. Resolving the associated aspects of divorce is where it can get complicated. If you are seeking a divorce in Hunterdon County, the family law attorneys at The Rotolo Law Firm can assist you.

Divorce is an emotionally trying process for all involved. Once a couple has come to terms that their relationship is over, they still must deal with the often heated issues related to the dissolution of their marriage -- child custody and support, fair and equitable distribution of assets and, perhaps the most contentious of all, alimony.

Alimony is a payment of support from one spouse to another. In New Jersey married couples are responsible for supporting each other. This holds true even after the marriage ends. Alimony is designed to ensure that both spouses can enjoy a lifestyle reasonably similar to the one they had while married. (1)

A New Jersey statute gives courts a list of 13 factors they can consider when determining alimony awards, including need and the ability of one spouse to pay. (1) That ability is based on recorded earnings during the marriage and sometimes, as recently confirmed by an Ocean County Superior Court, immediately following separation.

On November 1 Superior Court Judge Lawrence Jones, in hearing Dudas v. Dudas, ruled that an increase in Mr. Dudas’ income, which occurred almost immediately following his separation from his wife, can be considered when deciding the amount of the alimony award. (2)

Mr. and Mrs. Dudas were married for 26 years during which time Mr. Dudas earned an estimated $40,000 annually. Soon after Mrs. Dudas filed for divorce in 2008 Mr. Dudas experienced a significant increase in salary, earning $64,000 in 2009; $76,000 in 2010; and an anticipated $68,000 for 2011. (2)

In considering this case, Judge Jones gave particular attention to 4 of the 13 factors: need and ability to pay; the lifestyle enjoyed by the couple during their marriage; earning potential of both spouses; and other evidence considered relevant. Two other factors Judge Jones considered were the cost and the “momentum” of the marriage. (3)

According to the Judge, specifics of this case showed that Mr. Dudas’ ability to succeed and increase his earning potential was made possible by the support received from Mrs. Dudas throughout their marriage. He further ruled that ignoring the increased earnings would make it impossible for either spouse to enjoy a lifestyle similar to what they had while together. (2)

The nuances of divorce are complicated and can vary case by case. If you or someone you know is going through a divorce in Hunterdon County, The Rotolo Law Firm divorce attorneys can help. The Rotolo Law Firm, in Lebanon, NJ, is on Route 22 close to the intersection of Route 22 and 78.

(1) http://www.njdivorceonline.com/njpages/Alimony/alimony.asp
(2) http://www.law.com/jsp/nj/PubArticleNJ.jsp?id=1202521259101&slreturn=1
(3) http://www.law.com/jsp/nj/PubArticleNJ.jsp?id=1202522350523&hubtype=MAIN%20PAGE


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September 16, 2008

Palimony Re-examined and Redefined

Court holds that cohabitation is not essential for an award
By Edward S. Snyder, 193 N.J.L.J.652

The law of palimony has evolved and expanded over the last three decades and the Supreme Court of New Jersey has been active in defining its parameters. During the 2007-08 term the court once again delved into this area of family law by deciding Devaney v. L'Esperance, 195 N.J. 247 (2008). holding that cohabitation is not essential for an award of palimony, however declaring that it is just one of several factors to be considered by a trial court

Genesis of the Palimony Claim in New Jersey

Palimony is essentially "alimony" where the parties were never married. The true definition of palimony, however, can be described "in general terms [a]s a claim for support between unmarried persons." Devaney, supra, 195 N.J. 247 at 16.

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August 5, 2008

Demystifying the imputation of income.

“[A]ny party is free to retire, take a vow of poverty, write poetry, or hawk roses in an airport, if he or she sees fit. The only limit is discontinuance of the financial aid the former spouse requires. The reason for this is that the duty of self-fulfillment must give way to the pre-existing duty which runs between spouses who have been in a marriage which has failed.” Deegan v. Deegan, 254 N.J. Super. 350, 358-59.

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July 21, 2008

No Binding Arbitration of Custody or Parenting-Time Issues, Court Says

A three-judge Appellate Division panel recently ruled out binding, nonappealable arbitration as a way to settle custody and parenting time disputes. Arbitration is a favored remedy for settling disputes, but parties can’t bargain away the court’s obligation under the principle of parens patriae to ensure the best interests of children, the appeals court said.

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July 7, 2008

New Jersey Supreme Court says cohabitation no longer a requirement for Palimony.

The New Jersey Supreme Court ruled last month that “[c]ohabitation is not an essential requirement for a cause of action for palimony, but a marital-type relationship is required.” In Devaney V. L’Esperance, Not Reported A.2d., 2008 WL 2491976 (NJ). The Court by a 6-1 majority broke away from the precedent set by almost every state court by saying a Plaintiff need only prove that there was a “marital-type relationship.” The Court found that no such relationship existed in this case.

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August 27, 2007

New Jersey: Cutting Off the Elective Share

What if you do not have a will, you only have a few weeks left to live, and you do not want your spouse to inherit your estate?

In New Jersey, a surviving spouse has a right of election to take an elective share of one-third of the augmented estate under certain limitations and conditions spouse.

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May 18, 2007

Custody Battle – Bobby Brown Sues Whitney Houston

On April 26, 2007, Bobby Brown filed a lawsuit against ex-wife Whitney Houston in an attempt to change the custody terms as to their 14 year-old daughter, Bobbi Kristina. In addition to the shared custody, he is seeking child support and spousal support. A court date has been set for June 15, 2007.

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February 22, 2007

Divorce & Custody Battle - Anne Heche and Coley Laffoon

On or about February 1, 2007, Actress Anne Heche was served with divorce papers from her husband of over five years, cameraman and “stay-at-home dad”, Coley Laffoon, who filed “irreconcilable differences”. However, it has been reported, but not confirmed, that the split was due to a budding relationship with Ms. Heche’s “Men in Trees” costar, James Tupper.

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January 25, 2007

Divorce - Custody, Reese Witherspoon & Ryan Phillippe

After seven years of marriage, Actress, Laura Jeanne “Reese Witherspoon” filed for divorce from Actor, Matthew “Ryan Phillippe” on November 8, 2006, on the grounds of “irreconcilable differences”. However, it has been circulated Mr. Phillippe had an affair with a co-star, was excessively partying, and indulged in drugs.

Ms. Witherspoon is seeking primary physical custody of their two children (mentioned below), with visitation rights to Mr. Phillippe, and sole use of the family residence. She asks the Court that Mr. Phillippe be denied spousal support. [Ms. Witherspoon is represented by Robert Kaufman.] Reese%20Witherspoon.JPGReese%20%26%20Ryan.jpg

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January 21, 2007

Capacity to Contract and New Jersey Divorce Law

Let's say you and your spouse want a divorce but you don't want to hire attorneys. The two of you feel that you can draft a reasonable property settlement agreement and work with the county court clerk regarding procedural matters.

Beware of your future. Your ex-spouse may challenge the validity of the property settlement agreement, although it will be difficult. New Jersey Courts have held it is a fundamental principle that “the settlement of litigation ranks high in our public policy.” Jannarone v. W.T. Co., 65 N.J. Super. 476, 168 A.2d72 (App. Div.) certif.. denied, 35 N.J. 61, 171 A.2d 147 (1962).

Courts encourage parties to settle. Therefore, Courts are not likely to overturn agreements entered into by the parties voluntarily.

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January 20, 2007

Divorce & Custody Battle - Britney Spears & Kevin Federline

In the divorce between Britney Spears and Kevin Federline, Ms. Spears seeks legal and physical custody of their two sons, Sean and Jayden, with visitation rights for Mr. Federline.

Britney%20%26%20Sean.jpgBritney%20%26%20Kevin.jpgBritney%201.jpgBritney%20upset%20w-Sean.jpg

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January 15, 2007

Lepis and Anti-Lepis Clauses Defined

As as initial matter, it is important to note the New Jersey court system encourages parties to a divorce to settle. The Courts prefer when parties can resolve financial and custodial issues without judicial intervention. The terms of settlement are embodied in a Property Settlement Agreement, also known as a Marital Settlement Agreement.

Oftentimes, a party files a motion for modification of a specific term in the property settlement agreement. New Jersey Courts permit this. The Courts allow parties to file post-judgment (post-divorce) motions for modifications of property settlement agreements (contracts).

In this respect, the contract, property settlement agreement, is treated vastly different in the family context than in a business or employment context. In the latter, there is very litttle room for change.

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December 27, 2006

New Jersey Alimony Laws: Termination Based on Disability

What happens when a payor ex-spouse becomes disabled after the divorce and is no longer able to pay support obligations? Is he/she still obligated to pay?

In determining alimony, counsel fees, and property distribution, income may be imputed to a party who is voluntarily unemployed or underemployed; this requires intentional conduct without just cause.

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December 26, 2006

Support: Using Interest Earned from Inheritance in Calculation

In New Jersey, inheritance is viewed as separate property and is not subject to equitable distribution irrespective of when the inheritance is received. Nonetheless, inheritance can play a major role in assigning child support and alimony obligations. Keep in mind, inheritance monies should never be intermingled with joint assets. Always keep your inheritance separate from joint assets to avoid it being subject to equitable distribution.

For example, if the payee has stayed home to raise children and tend to the home, she (typically') may not receive all she believes she is owed if she has inheritance monies. The fact that inheritance cannot be divided between the parties, does not prevent the interest earned from investing the inheritance being calculated into support obligations. By this, the payee may actually become a "payor" as well, and be forced to contribute to her support or the support of her children through the interest received on her inheritance.

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December 24, 2006

Support: How New Jersey Treats Underemployment

UNDEREMPLOYMENT

In some circumstances, a party who is obligated to pay alimony and/or child support may change their employment, earn substantially less than before, and seek to have either obligation decreased on the basis of decreased income.

The New Jersey Courts will not overlook this event; it is not a matter of happenstance. In fact, New Jersey Courts may impute income to the payor up to the amount the payor earned at his/her prior employment.

In Mowery, the Court held it is not merely the present earnings of the payor, but the potential earning capacity that is the essence of this factor. Mowery v. Mowery, 38 N.J. Super. 92 102 (App. Div. 1955).

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