Understanding Alimony and Spousal Support

Sometimes, the equitable division of marital property is not enough to put one spouse in a more equal financial position. In some cases, there may be a large disparity in incomes between the two spouses, leaving one in a much better financial position after the divorce. In those instances, one spouse may need to pay support to the other, either temporarily or permanently. An experienced divorce lawyer can help you learn more about how alimony works in New Jersey.

What Is Alimony?

Alimony aims to equalize the two spouses’ living standards after the marriage ends. The law’s public policy embodies perceived fairness, thinking it unjust if the spouse who earns far less money is left in a far worse economic situation than the other one. However, most types of alimony do not mean permanent payments because they are intended to help a spouse improve their economic situation. 

How Long Does Alimony Last in New Jersey?

A court rarely orders open durational alimony (similar to permanent alimony). It is only ordered if a marriage lasts more than 20 years and in more extenuating circumstances. If there is a grave disparity between the spouses’ incomes or a reason why the receiving spouse would not be able to better their circumstances, a judge may be more likely to order permanent alimony.

Most alimony awards in New Jersey are for a set amount of time. A settlement agreement may specify the years a spouse may receive support. Once this period elapses, the spouse will no longer be able to receive support. The purpose of this payment type is to give a spouse more support when they are supposed to take steps to better their financial situation. If one has the means to get more education and job training, the law expects them to do it at some point. 

The financial disparity between the two spouses will be resolved at some point, but not during divorce. In that case, the spouses would agree, or the court would order alimony pendente lite. These are temporary payments while the divorce is pending to allow one spouse to remain on their feet until they reach a final settlement or the court issues an order.

How Is Alimony Determined?

There are two potential ways that a spouse may end up paying support to the other:

• They may include it as a clause in a mutually agreed upon marital settlement agreement.
• A judgment may be ordered if the two parties cannot agree and the case goes to court.

In many cases, the spouses can resolve the issue on their own. However, alimony is often one of the last issues to be agreed upon in a settlement agreement. 

While New Jersey does not have a statutory formula for calculating alimony, judges may use an unofficial formula based on the spouses’ incomes. On average, the spouse who earns less may receive one-quarter of the difference in incomes between the two spouses. 

Is Alimony Taxable?

You must know the tax treatment of alimony, regardless of whether you are the payor or the recipient. Now, the payor can no longer deduct the alimony paid from their taxes, while the recipient is also not required to pay taxes on money they receive in special support. You need to consider tax treatment before agreeing to spousal support. 

Contact the Red Bank Alimony Lawyers at Sanvenero & Cittadino Attorneys at Law for Help With Your Divorce

The Red Bank alimony lawyers at Sanvenero & Cittadino Attorneys at Law can help you understand all the financial issues relating to divorce. Legal help is just a phone call away. Call us today at 732-743-9665 or contact us online to schedule a free initial consultation. Located in Red Bank, New Jersey, we serve clients in Monmouth County, Middlesex County, and Ocean County.