Summary of New Jersey Alimony Law

Alimony (also known as spousal support) is the court-ordered financial support of one spouse by the other spouse as part of a legal separation or a divorce.

There are different types of alimony in New Jersey, including:

• • Permanent Alimony: This is alimony that is awarded for life to a former spouse. It is typically only awarded after a long lasting marriage where there is a large disparity in income and earning potential between the parties. Permanent alimony can be modified or terminated, but the legal standards are high for reducing or eliminating it.
• • Temporary Alimony: Also known as “pendent lite” alimony, this is alimony that is awarded during the pendency of the divorce.
• • Rehabilitative Alimony: This is alimony that is limited in duration, but does not terminate if the recipient spouse remarries. Its purpose to it aid the recipient spouse in becoming self supporting.
• • Alimony for a Limited Duration: Also known as “term alimony,” this is alimony that is only paid for a specific length of time.

• 1. The actual need and ability of the parties to pay,
• 2. The duration of the marriage,
• 3. The age, physical and emotional health of the parties,
• 4. The standard of living established during the marriage and the likelihood that each party can maintain a reasonable comparable standard of living,
• 5. The parties' earning capability, education and employability,
• 6. The length of absence from the job market,
• 7. Parental responsibilities for the children,
• 8. The time and expense needed to acquire education or training to enable a depended spouse to obtain appropriate employment,
• 9. The financial and non-financial contributions of each spouse to the marriage,
• 10. Equitable distribution,
• 11. Income available and non-financial contributions of each spouse to the marriage,
• 12. The tax consequences of alimony,
• 13. Any other factor which the court deems relevant.

Tax Consequences of Alimony

It is important to understand that there may be tax implications for individuals who pay or receive alimony. According to Section 71 of the Internal Revenue Code, alimony must be included in the recipient’s gross income and can be excluded from the payer’s gross income.

However, it is critical that payments actually qualify as alimony under the law. To qualify as alimony (also according to Section 71 of the Internal Revenue Code), payments must generally meet five conditions:

• (1) The payment is be a cash payment (such as a check or money order)
• (2) The payment is received by (or on behalf of) a spouse under a “divorce or separation instrument”
• (3) The divorce or separation instrument does not designate the payment as a payment which is not includible in gross cross income as alimony and not allowable as a deduction for the payee spouse (under Section 215 of the Internal Revenue Code).
• (4) The payer and payee are not members of the same household at the time payments are made
• (5) There is no liability to make payments after the death of the recipient spouse