Divorce & Family Law Insights

Unfortunately, at the time a divorce is finalized an individual can encounter new and unanticipated financial obligations.  Any debt that was incurred during the marriage and will not be paid off at the time of divorce needs to be addressed in the parties’ settlement agreement.  It is important that any written settlement reached between the divorcing parties be thorough and clear as to which of the parties is responsible for a particular debt and how and when that person will satisfy that debt. Unfortunately, at the time a divorce is finalized an individual can encounter new and unanticipated financial obligations.  Any debt that was incurred during the marriage and will not be paid off at the time of divorce needs to be addressed in the parties’ settlement agreement.  It is important that any written settlement reached between the divorcing parties be thorough and clear as to which of the parties is responsible for a particular debt and how and when that person will satisfy that debt.

The entry of a divorce judgment does not alleviate the joint responsibility for a joint debt.  As an example, should one party agree to pay the balance due on a joint credit card debt in its entirety, and then fail to subsequently do so, the credit card company can pursue its claim against both of the individuals named on the account. The creditor is not bound by any agreement made between the divorced parties.

Additionally if payments are late or not made, the Lender or the bank that provided the credit can report negative information to the credit reporting companies. This can affect not only the credit rating of the party who was responsible to make the payments but possibly the other party as well.

Many couples who are contemplating divorce or separation believe that litigation is their only option. The truth is that many couples can utilize mediation as a means of resolving their marital issues. Additionally, many couples who have been divorced but are dealing with issues which have arisen after their divorce settlement can use mediation as a cost-effective means of achieving a resolution. Mediation is a fair, unbiased and less confrontational alternative to the parties returning to Court. Many discover they have more individual control in the mediation process than when utilizing the Courts. Divorce mediation offers the possibility to avoid the lengthy and costly process of litigating disputes.

Mediation is a private process for discussing and resolving the parental and financial issues that are part of your divorce or the issues that often arise after your divorce has been finalized. Instead of choosing to pursue the resolution of their disputes through the court system, couples voluntarily agree to work out issues between themselves with the assistance of a neutral third party (an accredited family law mediator).

In some cases one spouse sees the advantages in mediation while the other party is reluctant; mistakenly believing that mediation is a form of marriage counseling. This is not the case. Mediation is a completely non-binding process where the parties attempt to resolve the issues that arise in a separation or divorce or where issues have come about after the parties are divorced (e.g. a party’s loss of employment, a child’s emancipation or their selection and cost of college, relocation of children out-of-state, compliance with Court Orders). Mediation does not include any form of therapy or counseling.

In New Jersey, there are two basic concepts of child custody. The more familiar concept is “physical” custody which refers to where and with whom the child will live. When parents share “joint physical” custody, the child lives with each parent for a certain amount of time during the year. A parent with whom the child spends most of their time is designated as the Parent of Primary Residence (“PPR”) or the primary caretaker. The parent with whom the child has time-sharing is designated as the Parent of Alternate Residence (“PAR”) or secondary caretaker. Generally, unless there is a concern that the parent of alternate residence will harm the child, parenting time or visitation rights will not be withheld.

The less familiar but equally important concept is “legal” custody which refers to a parent’s right to make decisions concerning their child, such as medical treatment, selection of healthcare providers, education, engaging in what might be considered hazardous activities and other significant decisions. In most cases, parents will have joint legal custody of a child and share the decision-making responsibilities. In some instances, however, the judge may award sole custody where only one parent has legal and physical custody. This is a relatively rare occurrence that is ordered only when the other parent is absent or legally unfit. A parent may be unfit if he or she has engaged in child abuse or neglect or is struggling with an addiction to alcohol or drugs. Absent such circumstances, a joint legal custodial relationship among parents is the preferred arrangement since it is likely to foster the best interests of the child.

A recent Court decision restated that “the prime criterion for establishing a joint legal custodial relationship between divorced or separated parents centers on the ability of those parents to agree, communicate, and cooperate in matters relating to the health, safety, and welfare of the child notwithstanding animosity or acrimony they may harbor towards each other. The ability of parents to put aside their personal differences and work together for the best interests of their child is the true measure of a healthy parent-child relationship.”

Parents who are either currently going through a divorce or were divorced many years ago often ask “at what point do I no longer have to pay child support for my children?” It surprises some parents to learn that there has been no specific age at which time parents are no longer obligated to pay child support.

Parents who are already divorced should review their settlement agreement which usually spells out the conditions which must be met for the child to be deemed “emancipated.” It is at the time of emancipation when parents no longer are financially responsible to support their children.

A recent change in New Jersey law provides more certainty. As of February 1, 2017, unless otherwise specified in a Court order or judgment, the obligation for a parent to pay child support stops without a Court Order on the date of a child’s marriage, death or their entry into military service.

One of the questions often asked by divorced individuals, particularly at the time of their retirement or the retirement of their former spouse, is whether or not they are entitled to receive Social Security benefits based on their prior marriage. The Social Security Administration interprets the law with the philosophy that a divorced person may deserve a personal benefit themselves if they were a long-term spouse of a member of the country’s workforce.

Generally, there are two sets of rules which the Social Security Administration applies to determine whether or not an individual will qualify. The first applies if your former spouse is living; the second applies if they are deceased. The interpretation of these rules can sometimes be complicated and is often necessary to have an experienced family law attorney review not only the rules applied by Social Security but the settlement agreement signed at the time of the divorce.

In the first scenario, where the former spouse is still living, the preliminary criteria which need to be met are: (1) your prior marriage lasted for 10 years or more; (2) you are not currently married; and (3) you are 62 years of age or older. Just as important is whether you are entitled to receive Social Security benefits based on your own prior work history. If you are, the amount which you are entitled to receive for your efforts must be less than what you are entitled to receive based on your prior marriage. No individual is entitled to collect both benefits.

Today’s current economic reality is one of great uncertainty, especially when it comes to employment. Employees who could count on receiving an annual cost of living adjustment or performance bonus no longer have that luxury, nor the security that their years of experience and training will translate into an equal or higher-paying position should they lose their job. These realities of employment cut across the entire New Jersey labor market, yet they have an even deeper impact when faced by divorced individuals with existing alimony obligations.

Alimony, which is sometimes referred to as spousal support or maintenance, is defined as the obligation upon one spouse to provide financial support to his or her spouse before or after marital separation or divorce. In 2014 the New Jersey Legislature passed, and the Governor signed, an alimony reform bill which “modernized” how alimony awards are to be calculated. One change in the new alimony statute deals with how judges can interpret cases where the payor of alimony attempts to lower or all together eliminate their alimony obligations due to job loss.

Recently, a Superior Court judge in New Jersey rendered a decision effecting thousands of divorced spouses in our state. The judge’s ruling confirmed for the first time that the 2014 alimony overhaul would not just apply to individuals divorced since the revisions were enacted two years ago, but to all divorced individuals currently paying or receiving alimony.

In New Jersey, child-support is defined as a financial payment from one parent to the other to provide for the needs of their child or children. Child support is the right of every child and neither spouse can waive this responsibility. All parents regardless of their marital status have an obligation to support their children until they are deemed emancipated.

In most instances, the amount of child support to be paid is calculated by using New Jersey’s Child Support Guidelines. Income information is exchanged between the parents and this data is used in combination with factors such as the number of children, percentage of non-custodial parenting time and other prior child support obligations, to determine the amount of child support that is to be paid weekly. The Guidelines take into account the amount of funds necessary between the two parents to cover the basic needs of the children including, but not limited to, their food, shelter, healthcare and clothing expenses.

Child support obligations will remain in place for many years. Child support is not terminated automatically and may continue longer based on extraordinary circumstances such as the special needs of a child. As such, a common aspect of many divorce agreements is an agreement between the parties for the use of a “COLA” which is an acronym for Cost-of-Living Adjustment. This procedure automatically raises child-support awards every two or three years, the specific details of which are negotiated and agreed to before any final divorce judgment is entered. The purpose of a COLA is to keep the child support award’s value current due to inflation. If child support is payable through the Probation Department, parents are often contacted directly regarding the implementation of a cost of living adjustment.

Whether you have been served with notice that your spouse has filed for divorce, or if you are contemplating filing for divorce yourself, there are important steps anyone facing this scenario should undertake.

The first is to stay calm. This is obviously easier said than done but it is important as many people do or say things while processing this major life change that they later come to regret.

If you have children, take whatever steps necessary to distance them from the proceedings you or your spouse are considering.  At this early stage of the process there is no benefit to advise them of the situation and they should not be involved in any discussions between you and your spouse.  Children should never be compelled to “choose sides” regardless of their age.

This September will mark two years since the New Jersey legislature made sweeping revisions to the state’s alimony statutes. The legislature amended the alimony statutes in order to address several pressing issues incluing:

• making it easier if to reduce alimony payments when a former spouse loses their employment;
• imposing new restrictions on individuals who cohabit with another while receiving alimony from their former spouse;