Changing Alimony Post – Divorce
A repeated question we often hear at Onward is: Can alimony (spousal support) be changed after a divorce? The answer is yes, but it typically requires a court order and must meet certain legal standards. Here’s how alimony can be modified and the circumstances under which it can happen:
1. Grounds for Alimony Modification
Alimony can usually be modified if there’s a significant change in circumstances that affects either the payer’s ability to pay or the recipient’s financial needs. Common reasons for modifying alimony include:
Change in Income: If the payer experiences a substantial decrease in income (e.g., job loss, disability) or the recipient experiences a significant increase in income (e.g., new job, remarriage), the court may modify the alimony order.
Change in Financial Needs: If the recipient’s financial needs decrease or increase (e.g., due to new living arrangements, health issues), alimony may be adjusted accordingly.
Remarriage or Cohabitation: In many cases, if the recipient remarries or enters into a cohabitating relationship where they share financial responsibilities, alimony can be reduced or terminated. Courts often see remarriage or cohabitation as reducing the financial need for spousal support.
Retirement: If the payer retires and experiences a significant drop in income, they may request a modification to reduce or terminate alimony payments.
2. Temporary vs. Permanent Alimony
Temporary alimony is awarded for a specific period (e.g., until the recipient becomes self-sufficient). Once the time period ends, alimony may be automatically terminated or modified based on new circumstances.
Permanent alimony can be modified but is generally more difficult to change unless there are substantial changes in financial circumstances or needs.
3. Mutual Agreement to Modify Alimony
Mutual Agreement: If both parties agree to change the terms of alimony, they can draft a new agreement and submit it to the court for approval. Note: This is the easiest way to modify alimony.
Court Approval Required: Even if both parties agree, the court must approve the modification to make it legally enforceable.
4. Filing a Motion to Modify Alimony
If both parties cannot agree on modifying alimony, the person requesting the change (usually the payer or recipient) must file a motion to modify alimony with the court that issued the original order.
The motion should include:
- An explanation of the significant change in circumstances.
- Supporting documents, such as proof of income, medical records, or evidence of new living arrangements.
A court hearing will be scheduled, during which both parties will present their case, and the judge will decide whether to grant the modification.
5. Termination of Alimony
Alimony can also be terminated in specific situations, such as:
Recipient’s remarriage: In many jurisdictions, alimony automatically terminates if the recipient remarries.
Death of either party: Alimony typically terminates upon the death of either the payer or recipient unless otherwise specified in the divorce decree (e.g., if life insurance was arranged to cover alimony in the event of death).
Cohabitation: Some states allow for the termination of alimony if the recipient cohabitates with a new partner in a way that reduces their financial need.
6. Limitations on Alimony Modification
Some divorce agreements or court orders may prohibit or limit modifications to alimony. For example:
Non-modifiable alimony: In some cases, the divorce decree might specify that alimony is non-modifiable, meaning that it cannot be changed regardless of future circumstances.
Alimony waivers: Some agreements might include waivers that prevent either party from requesting future modifications.
7. Effect of Tax Law Changes on Alimony
The Tax Cuts and Jobs Act (TCJA), which took effect in 2019, changed the tax treatment of alimony:
Pre-2019 divorces: Alimony payments made under divorce agreements finalized before January 1, 2019, are tax-deductible for the payer and taxable for the recipient.
Post-2019 divorces: For agreements finalized on or after January 1, 2019, alimony payments are not tax-deductible for the payer, and the recipient does not report alimony as taxable income.
Modifications: If an alimony order from a pre-2019 divorce is modified after 2019 and the modification includes a clause adopting the new tax treatment, the payments will follow the post-2019 rules.
8. Legal Representation
Seek Legal Help: Because modifying alimony requires navigating court procedures and proving substantial changes in circumstances, it’s often beneficial to consult a family law attorney. They can help file the necessary paperwork, gather evidence, and represent you in court if needed.
Summary of Steps to Modify Alimony:
By following these steps and understanding the circumstances under which alimony can be changed, you can request a modification that best reflects your current financial situation.