Did you know you can go to court and ask the judge to increase, decrease, or stop spousal support any time during the period when court has jurisdiction unless you agree otherwise in your settlement?
In most states the court will retain jurisdiction over spousal support for different periods of time based on factors in the case. The main factors include:
- Length of marriage
- Age of the parties
- Each party’s ability to support themselves by earning a living and or living off the assets they own after the divorce.
Here’s an example.
A couple in their mid-50’s who has been married for 25 years with one party having been a full-time parent would likely see the court retain jurisdiction over modification of spousal support forever in California. The length of marriage and ages of the parties would likely classify the example as a long-term marriage.
The working and paying spouse would be allowed to retire at normal retirement age, 65 or 67 depending on who you ask, at which point the amount of support could be modified to reflect the decreased income of the payer. If the payer continues to work past their normal retirement age they may be required to continue paying support at the same level. This has become more common as many baby boomers work past normal retirement age.
Laws vary from state to state so be sure to consult experts in your home state.
During the court’s jurisdiction either party may petition the court for a modification based on a change of circumstances. A change of circumstances may include:
- job loss by no fault of the worker
- disability
- decrease in earnings of a small business owner due to economic circumstances
- retirement at an appropriate retirement age
- many other factors.
What other life changes apply?
It can also go the other direction where a payer has a large increase in income, a one-time financial windfall through bonus or stock compensation. In this case the payee could seek to modify the support amount upwards.
We often work with the payee spouse to determine whether they should seek an upwards modification of support. To do so, we may ask for the payer to provide annual income disclosures, so we can be aware of any factors suggesting an upwards modification may be appropriate.
In some cases, it makes sense for the parties to agree to a non-modifiable spousal support order. This so called non-modifiable spousal support can stipulate duration of the payment and or dollar amount or both. Non-modifiable spousal support comes with risks and rewards for both the payer and the recipient but can make sense for both parties in the right circumstances.
Some cases build modifications into the original agreement corresponding with the recipient reentering the work force or some change in financial circumstances in the future. These are often called step down orders.
This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation.
Lou Falvo is a Certified Divorce Financial Analyst® and CIMA® (Certified Investment Management Analyst) who assists clients by evaluating the tax and financial aspects of divorce. Lou is dedicated to reducing the burden of each client by thoroughly examining the financial elements of the client’s divorce, with a keen focus on what is in his or her best interests. Contact Lou to find out how he can assist you with your divorce proceedings at lfalvo@crossroadsdivorce.com or (585) 542-2382.