Whether you call it spousal support or alimony, the financial obligation to an ex-spouse following a divorce is frequently the subject of intense negotiations.
No matter how much effort went into an initial agreement, a changing economy can significantly affect both the payer’s ability to meet their support obligations and the recipient’s financial needs. A legal process for modifications does exist and may be applicable in the face of economic changes, so it’s important to understand what the justifications for modifications are and how to pursue them.
Modifications to spousal support can be based on numerous factors, including economic downturns, inflation, and job losses: Anything that shifts financial stability can directly affect an individual’s ability to pay or the need for spousal support. A broader economic crisis can create ripple effects, including the paying spouse experiencing job loss, reduced income, or business downturns. These things may make it difficult for the payor to fulfill alimony obligations, and likewise, the spouse who is owed support may suffer the same impacts, struggling with rising living costs, unexpected expenses, or job instability.
While some spousal support agreements proactively include terms that allow periodic cost-of-living changes, for those that don’t, the recipient may seek an increase in payments when high inflation hits so that they can maintain their standard of living. Similarly, a payer facing financial hardship can go to court to seek a reduction. Judges are generally open to modifications when a substantial change in circumstances occurs. These changes may include:
- Significant income reduction due to a job loss, salary reduction, or medical disability.
- Recipient’s improved financial status such as gaining employment, remarrying, or receiving a financial windfall.
- Cost-of-living Increases when inflation significantly affects the recipient’s financial stability.
- Retirement of the payer
To seek a modification, the party requesting the change needs to file a petition with the court explaining the substantial change. The petition needs to include documentation that supports the claim, such as tax returns, pay stubs, employment records, and financial statements. The court will consider the financial well-being of both parties to assess whether the demonstrated change justifies an adjustment to the original agreement.
Economic change is inevitable and unpredictable and can significantly impact the sufficiency or impact of spousal support agreements. Understanding the options available for modification can help both payers and recipients seek fair adjustments. An experienced family law attorney can help you with your specific situation.