Will Alimony Terminate When I Retire?

Upon reaching retirement age, most individuals paying alimony expect their support obligation to end. However, very few divorce agreements provide for a truly automatic termination.  While the law does generally permit a reduction or even termination in many circumstances, the legal analysis depends in part on when you were divorced.  For divorces that were finalized after the 2014 amendments to New Jersey’s alimony statute, individuals paying alimony are entitled to a rebuttable presumption that their alimony obligation should terminate upon their actual retirement, so long as they are of the age where they qualify for full Social Security retirement benefits.  For alimony cases that were finalized prior to 2014 the analysis is slightly different, although the law still does generally favor at minimum, a modification of alimony, if the applicant actually retires. 

Prior to filing anything with the Court, it is generally recommended that a party looking to retire attempt to reach out to their former spouse and alert them to the impending retirement.  This gives their former spouse time to plan ahead and permits for some attempt to resolve the matter without litigation. 

In the event an agreement cannot be reached, an application must be filed with the Court.  Importantly, the payor must show that they actually intend to retire.  Court's will consider applications before the date of retirement, but the moving party must demonstrate that retirement is real and imminent.  Simply turning Social Security retirement age is not enough.  If a party wishes to work past retirement age, it is unlikely that a Court will fully terminate alimony, unless the divorce agreement contemplates this. 

Once an application is made, the Court may schedule a hearing to examine factors set forth in N.J.S.A. 2A:34-23 before rendering a decision. These factors include specific considerations for self-employed individuals.  

Given this process, many clients are advised to negotiate specific language in their divorce agreements that permits an automatic termination of alimony and this is an important consideration for anyone contemplating a divorce.  For individuals with existing agreements who are thinking about retirement, it is important to start this process as soon as possible to ensure alimony is modified upon your retirement.   If you have an existing agreement, it is also critical to carefully review the terms of your agreement relating to retirement. It is also extremely important that you adequately address all of the statutory factors and considerations to ensure that you obtain a desirable result.   The attorneys at Maleski, Eisenhut & Zielinski, LLC are available to assist you to carefully review your existing agreement and the law and guide you appropriately.  If you have any questions about terminating your alimony at retirement, please do not hesitate to contact us for a consultation.