The concept of alimony was created so that individuals, historically women, would not become wards of the state after a divorce. The concept has evolved such that it applies to all genders who are legally allowed to marry and divorce in New Jersey. The state’s premise is that where two people have an economically beneficial legal relationship, depending on the length of time and other factors, that economic benefit should continue for a period of time so that the dependent party can establish financial independence and the state does not need to utilize its resources. There are both social and economic reasons for this legal concept.
It is commonly believed that alimony should preserve the lifestyle the married parties enjoyed during their marital relationship. From a high level, that statement is not untrue. However, the economic reality for most families in NJ is that this is an economic impossibility. Taking one pool of money and stretching it over two households cannot be done without modifications for each party. This information is often a surprise for most who are divorcing.
New Jersey, unlike other states, does not have a calculation or calculator that can be used to determine an alimony amount. The legal compass is statutory and case law. First and foremost, N.J.S.A. 2A: 34-23 is the statute that governs alimony. It provides guidance for the establishment of alimony or spousal support while a divorce is pending, when a divorce is final, and in the case of changed circumstances such as the cohabitation of an unrelated adult with the payee, retirement of the payor spouse, or loss of job for the payor. Each instance has a series of factors the court must consider when faced with the question of alimony.
Lastly, due to changes to the Federal Tax Code in 2018, alimony is no longer taxable to the payee or tax-deductible to the payor. This was a significant change in long-standing law and has created an extra layer of complexity that the statute does not yet recognize.
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