New Jersey Enacts Alimony Reform Bill

After almost three years of legislative debate and public discussion, alimony reform has finally come to New Jersey. On September 10, 2014, Governor Chris Christie signed into law a bill that went into immediate effect and substantially amends various provisions of New Jersey's alimony law, N.J.S.A. 2A:34-23. As a general overview, the bill "establishes durational limits and enumerates certain factors concerning modification and termination of alimony; establishes 'open durational' alimony."

Importantly, the amended law does not apply retroactively, expressly providing that it "shall not be construed either to modify the duration of alimony ordered or agreed upon or other specifically bargained for contractual provisions that have been incorporated into: (1) a final judgment of divorce or dissolution; (2) a final order that has concluded post-judgment litigation; or (3) any enforceable written agreement between the parties." Thus, specifically as to alimony awards, the law will apply only to divorces in process and future divorces. The law will, however, apply to applications to modify alimony based upon changes of circumstances and retirement.

Highlights of the law, which include several codified provisions of already existing case law, are as follows:

Duration of Alimony

In what is considered the most significant change to the existing alimony law, the term "permanent" alimony has been replaced by "open durational" alimony. Use of the word "permanent" sparked controversy and debate for years, culminating in its elimination from the law. Now, for any marriage of less than 20 years in duration, the total duration of alimony shall not exceed the length of the marriage, except in "exceptional circumstances." The length and amount of alimony shall still be determined pursuant to the statutory factors. However, new is the consideration of "the practical impact of the parties' need for separate residences and the attendant increase in living expenses on the ability of both parties to maintain a standard of living reasonably comparable to the standard of living established in the marriage . . ." After the Crews case was decided by the New Jersey Supreme Court in 2000, marital lifestyle was elevated above the other alimony factors and further, led to the misconception that the supported spouse only is entitled to maintain the marital standard of living. The new law provides that neither party has a greater entitlement to the standard of living (or a reasonably comparable standard of living) established during the marriage.

A non-inclusive list of "exceptional circumstances" is set forth in the proposed law and includes:

The ages of the parties at the time of the marriage or civil union and at the time of the alimony award; The degree and duration of the dependency of one...