Spousal support, more commonly known as alimony, is not an automatic given in a divorce. The details need to be worked out.  In New Jersey there are four categories of spousal support: open durational, limited duration, rehabilitative and reimbursement.  Open durational and limited duration are the more common types of alimony. You can receive a combination of types of alimony, such as limited duration and rehabilitative, depending on your set of circumstances. 

Open durational is for marriages longer than 20 years and generally can last until the person paying it reaches full retirement age.  Limited duration is for a set amount of time.  Rehabilitative and reimbursement spousal support are less common. Rehabilitative is to help pay for the recipient spouse’s schooling that needs to be completed to help him/her get on his/her feet after the divorce.  For example, paying for a certificate program or to finish a college degree so that you can effectively enter or re-enter the workforce and start fully supporting yourself.  Reimbursement occurs when one spouse helped pay for the other spouse’s advanced education during the course of the marriage but now will not be married to that person to reap the rewards of the education.  For example, if you paid for your spouse’s law school while you were married and then get divorced upon his/her graduation, reimbursement spousal support is to pay you back for your outlay.

At Westfield Mediation, LLC, the professional divorce mediators can help you address all the terms of spousal support.   No matter what type of alimony applies to your situation, you need to determine the terms of payment- how much and how long. Will you pay by check, direct deposit, once a month, per paycheck, once a year?  Will you pay for 3, 5, 7, 18 years?  Are you paying the same amount each year or is there a step-down process?  Each divorce is unique and the mediators can help you figure out what works best for your new future.
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To learn more about spousal support and divorce mediation, please contact Randi M. Albert, JD, or Michelle Weinberg, M. Ed., Licensed Marriage and Family Therapist, at Westfield Mediation, LLC at 908.913.0373.  View our website at  www.westfieldnjmediation.com or email us at info@westfieldnjmediation.com. 
 
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The decision to move forward with a divorce is a serious one that has a long-lasting impact on your future and the future of your family.  It is not a decision one should normally rush, except that this year time may be running out.

Because of the new tax law, the tax implications for spousal support (alimony) will change if your divorce is granted in 2019 versus 2018.  If your divorced is finalized in 2018, then your alimony payment can be tax deductible for the person paying it and taxable as income to the person receiving the alimony. This current rule was designed to encourage higher earners to pay alimony to their exes. However, for the current rule to apply, the divorce process cannot just be started in 2018 but must be finalized by the judge after everything is agreed upon by all of the parties. 

If your divorce is finalized in 2019 the alimony payment is not tax deductible to the payer or taxable as income to the payee.  Instead, the payer gets taxed on his/her whole income, including the alimony paid.  As a result, s/he will have less money to pay towards alimony and the person receiving the alimony will likely receive much less, albeit tax-free. 

So, if you have been hemming and hawing about your divorce for years and alimony will be an issue, you may want to consider getting moving with the process.  I imagine the courts will get overcrowded towards the end of the year with people wanting to make sure to get divorced in 2018.  And you want be on that court calendar sooner rather than later so your divorce can be finalized in 2018.

One of the fastest ways to move through the divorce process is by utilizing divorce mediation.  At Westfield Mediation, LLC, we allow our clients to set the pace.  Divorce mediation generally takes about 4-6 meetings from start to finish.  And you schedule the meetings at your convenience.  But the court has its own timeline as well, which may get backlogged as the end of the year approaches. There is still time to get divorced in 2018, but the window is closing fast. 
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For more information on alimony or divorce mediation, please contact Randi M. Albert, JD, or Michelle Weinberg, M. Ed., Licensed Marriage and Family Therapist, at Westfield Mediation, LLC at 908.913.0373.  View our website at  www.westfieldnjmediation.com or email us at info@westfieldnjmediation.com. 
 

Something about “alimony” strikes a nerve in divorcing couples.  In divorce mediation, we often talk about alimony or “spousal support”, as we call it in New Jersey, and in the beginning, the conversations can get heated. Sometimes, one spouse feels that they deserve more money for a longer period while the other wants to pay less money for a shorter time.  Fortunately, in divorce mediation, we can almost always come to a resolution, so no one feels cheated.

 In New Jersey, there are four types of spousal support, permanent, limited duration, rehabilitative (used to get one partner back on their financial feet) and reimbursement. The amount and terms of alimony are based on several factors including the length of the marriage and the earning capacities of each couple.  There is no one set official formula.  And the terms can get complicated because the amount of spousal support has tax consequences and also impacts child support obligations.  Moreover, the couple may decide to divide assets and liabilities in a way that takes into account how much spousal support is being paid.  So, really, decisions on spousal support can have a big impact on the whole separation agreement. 

Luckily, the fact that there is no set formula for spousal support can be used as an advantage. This way, the couple can work together with a mediator to develop an individualized plan that works best for their family.  In mediation, they can review their assets and budgets and potential earnings, and create a plan that leaves all the parties feeling like their interests are being considered. In divorce mediation, instead of seeing spousal support as a sticking point, it becomes one part of a larger plan for moving forward.  

For more information about Divorce Mediation, please contact Randi M. Albert, JD, or Michelle Weinberg, LMFT, at Westfield Mediation, LLC, at 908.913.0373.  Visit our website at www.westfieldnjmediation.com or email us at info@westfieldnjmediation.com. 

Alimony or no alimony -- that can be the question.  Is it better to take a larger chunk of the assets upfront, or to take a smaller share plus the steady stream of spousal support? Your divorce mediator can help you create the agreement that works best for you.  

When divorcing – either through mediation or litigation, couples need to figure out how to divvy up all of the assets -- cash, investments (401K, stocks, etc.) and property (house, cars) as well as the liabilities -- mortgage, loans, credit card debt.  Some couples have a lot of different assets and the challenge is how to divide them in such a way that prepares them best for their new lives. Sometimes, it is best to divide the investments and property first, and then see how much actual cash is left over to live on, and then divide up the money.  Other times, people start with the cash. They look at their life post-divorce and project how much cash they will need to finance their future new life.  After dividing the cash, they balance out the spreadsheet by taking more or less of the remaining assets.

Two things to consider when doing these calculations are child support and spousal support.  Child support may impact the amount of cash needed on a monthly basis.  One parent needs more cash to pay the support amount and the other parent may need less monthly income because s/he is counting on the support money to supplement the bottom line. Child support is mandated by the state of New Jersey.  You cannot opt out of paying child support. 

In contrast, spousal support (aka alimony) is not mandated by the state of New Jersey. So, what to do about alimony is a big decision.  First consider -- are you entitled to permanent alimony? Limited? None? Then, think about whether you should you forgo alimony even if you are legally entitled to it.   Even if a spouse would be entitled to receive alimony, during the course of divorce mediation, a couple can create the terms of their agreement and opt out of alimony.  In such cases, usually the spouse that is entitled to alimony receives a larger chunk of the assets than s/he would if alimony were in play.

Just remember, if you waive your right to alimony when you get divorced, you cannot reclaim it down the road.  Once your divorce decree states that there is no alimony, then there is no alimony.  Ever.  Some people are very comfortable with this decision and others are too worried about their financial future to give up this right, and feel more comfortable with a consistent income stream from his/her ex-spouse, even if it lasts only for a limited time.  The choice is yours, and the mediation process helps you arrive at the answer that works best for you. 

-Michelle Weinberg, LMFT