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Alimony is a monthly payment from one spouse to another ordered during divorce proceedings. Alimony is not always granted in every divorce case and is subject to various legal considerations. Many spouses find themselves unsure about the complex legal considerations and implications involved in the process of receiving or having to pay alimony. 

If you are thinking about filing for divorce or are in the process of doing so and have concerns about alimony, the experienced divorce attorneys at Rosenblum Law can help. We can guide you through the legal process of requesting or having to pay alimony and can answer any questions you may have about it. In the meantime, this comprehensive guide of frequently asked questions aims to answer some of the most prominent concerns you may have about alimony in NJ.

What is alimony?

Alimony is a court-ordered payment from one spouse to another. It is granted in divorce cases in which one spouse is economically disadvantaged compared to the other. The goal of alimony is to allow spouses to continue living as close to the standard of living they enjoyed during the marriage. 

Is alimony taxable?

According to the IRS, alimony is not taxable if the divorce was finalized after December 31, 2018. There are conditions that must be met for alimony to not be included in gross income.

• The spouses do not file a joint return together
• The payment is in cash, checks, or money orders
• The payment is to a former spouse as ordered by a divorce decree or separation agreement
• The spouses are not part of the same household when the payment is made
• The payment is not treated as child support or property settlement
• The divorce agreement does not specify that the payment is not included in the gross income of the payee or deducted by the payor. 

As long as all of these conditions are met, the payment is considered nontaxable alimony for tax purposes. The person paying alimony cannot deduct it from their taxes.

What qualifies a spouse for alimony?

Typically, alimony is ordered to level the playing field and keep both spouses as close as possible to the standard of living that they enjoyed during the marriage. A spouse can qualify for alimony if they:

• Were financially dependent on their spouse during the marriage
• Were a homemaker and delayed their career as a result
• Significantly contributed or supported a business or career of the other spouse 

How long does alimony last?

Alimony payments rarely last longer than the length of the marriage. Alimony may also be ordered to last for another specific amount of time or until a milestone is reached. If a spouse is disabled and cannot work, alimony may last longer. There are also conditions under which alimony may be stopped. For example, if the spouse receiving alimony remarries, the alimony payments end. 

How does alimony work?

Alimony is typically paid in monthly installments, although at times it can be ordered as a lump-sum payment. The spouse paying support must ensure that the other spouse receives the payment. If alimony payments are not made voluntarily, they can be enforced with wage garnishments and automatic payments. 

How is alimony calculated?

If the parties do not agree on an alimony amount, a judge will determine it. There is no set formula for calculating alimony. Instead, the judge will look at all of the factors of the case to determine the amount of alimony. The paying spouse’s ability to pay plays a significant role in determining the amount of alimony.

What disqualifies you from alimony?

If you have a similar earning capacity as your spouse, you probably won’t get alimony. Some states also do not allow  alimony in fault-based divorce. For example, if adultery is the grounds for divorce, and you committed adultery, you may not get alimony in some states. In New Jersey, fault-based grounds for a divorce do not affect eligibility for alimony.

What factors are used to determine alimony?

There are several considerations that are used to determine the amount of alimony.

• Each  party’s need for alimony
• The ability of the other party to pay
• The standard of living established during the marriage
• Earning capacities and available income of each party
• Age, health, and emotional condition of each party
• The duration of the marriage
• The time required to find employment if the spouse did not work during the marriage
• Contributions to the marriage, including child rearing, housekeeping, and supporting the education or career of the other spouse.
• Ongoing responsibilities for children of the marriage

The judge has some discretion as to how much emphasis to place on each of these criteria. In New Jersey, Section 2A:34-23 lays out the factors used to determine alimony

How long do you have to pay alimony?

The length of time alimony must be paid is based on many factors, such as the duration of the marriage and each party’s ability to make alimony payments. Alimony may be ordered to last for a time equivalent to one-third, half, or the entire duration of the marriage. In most cases, alimony is not paid longer than the marriage lasted. You can also stop paying alimony if the other spouse remarries or cohabitates with another person. 

How much is alimony?

The amount of alimony paid in a divorce settlement varies. However, according to a study by Custody Xchange, alimony payments can range from $0 to $1,381 per month. Overall, the median alimony payment in the US is $465 per month. 

How can I avoid paying taxes on alimony?

If you are the receiving spouse, you do not have to claim alimony as income and you do not pay taxes. This is true for all alimony ordered since 2018. It also applies to divorces before 2018 if they were modified in 2019 or later. If you already pay alimony and the divorce was before 2018, you must pay taxes on received alimony while the paying spouse can deduct it from their income. The only way to avoid paying taxes on alimony for divorces before 2018 is to file a motion to modify the divorce decree and request that a new hearing be conducted.

Can I get alimony after two years of marriage?

You may be able to get alimony after two years of marriage if you put your career on hold during the marriage. However, alimony never lasts longer than the marriage, so you would only receive alimony payments for up to two years. In some states like Texas, you can only get alimony after 10 years of marriage. In New Jersey, there is no set time that you have to be married in order to be eligible for alimony.. 

How do you get alimony?

To get alimony, you must request it. The process starts with initial filings in the divorce proceeding. If you are the spouse filing for divorce, you must request alimony in your petition. If the other spouse files for divorce, you can request alimony in your answer and counterclaim. From there, you may be able to get your spouse to agree to alimony during negotiations. If they do not, the court will decide whether or not alimony is to be paid and how much. 

How long do you have to be married to get alimony?

This varies by state. New Jersey does not require the marriage to have lasted a specific amount of time to get alimony. However, the duration of the marriage is a key factor in determining how long alimony payments will last and the amount of alimony. 

What states do not enforce alimony?

Every state will enforce alimony if it is ordered. 

How can I avoid paying alimony?

The best way to avoid paying alimony is to have a  prenuptial or postnuptial agreement that negates alimony. However, if you do not have such an agreement before the divorce, you will have to prove that the other spouse doesn’t need the money, or doesn’t qualify to receive alimony for a different reason. An attorney can also help make these arguments. 

Can you receive disability and alimony at the same time?

Yes. Alimony is not earned income and does not count toward disability payments. However, payments from the Supplemental Security Income (SSI) program, which provides monthly cash payments to low income, blind, disabled, or elderly people, is  based on income. This means SSI payments may be unavailable or reduced if you are receiving alimony. 

Does alimony count as income?

Alimony does not count as income for tax purposes. However, you can include alimony in your income to qualify for housing, credit cards, or other programs. Alimony may also count against your ability to get social assistance, such as food stamps or cash assistance from the Supplemental Security Income (SSI) program. 

What is permanent alimony?

Permanent alimony is court-approved payments made to a former spouse that is ordered to last until the paying spouse retires, or until the receiving spouse dies or remarries. Permanent alimony is rarely ordered. However, it is more likely to be ordered in cases where the marriage lasted more than 20 years. 

When does alimony end?

The court may specify how long alimony is to be paid. If it does not, alimony ends when the receiving spouse dies, remarries, or cohabitates with another. If the receiving spouse no longer needs the payments, alimony can also end by filing a motion with the courts to modify the divorce decree.

Who pays alimony?

Either the husband or the wife could end up paying alimony, depending on their financial circumstances, income, and other factors. However, alimony is not awarded in every divorce. Sometimes neither spouse will pay alimony if their earning potential is similar. 

How much alimony does a military spouse get?

A military spouse can get alimony based on the calculations for the state in which they live. The only limit to how much alimony a military spouse can get is that the Uniformed Services Former Spouses’ Protection Act (USFSPA) limits the amount of retired pension that can be paid. Generally not more than 50% of these funds can be taken by the military spouse. However, this can increase to 75% if child support is also ordered.

How can I avoid paying alimony in New Jersey?

To avoid paying alimony in New Jersey, you must prove that the other spouse does not need the alimony payments. This can be true if the spouse is cohabitating with another, remarries, or has similar earning power and income to yours. 

Can a prenup prevent alimony?

Yes, a prenup can prevent alimony. If the prenup states that no alimony will be paid in case of divorce, no alimony payment can be ordered. However, there are some instances in which a prenup can be challenged. If the prenup is thrown out, alimony can still be awarded.

Does alimony change if income changes?

Alimony can change if income changes, but for this to happen, you must go back to court. You must file a motion to modify the alimony amount based on changed circumstances. The alimony can be increased or decreased based on the changed circumstances.