reimbursement alimony

Many marital settlement agreements provide that a payee spouse shall receive what is legally classified as “limited duration alimony” from the other spouse.  While not “permanent”, alimony of a limited duration is designed for a situation where the payee spouse contributed to a generally short-term marriage where the marriage itself displayed indicia of a marital partnership, and the payee spouse has skills and education enabling him or her to return to the workforce.  LDA is oftentimes distinguished from other forms of alimony known as “reimbursement alimony” and “rehabilitative alimony,” which are more tailored to facilitating the payee spouse’s ability to earn or to make that spouse whole for sacrifices made during the marriage.

The question then becomes, for the purpose of this blog entry, can LDA be extended, especially where the term was agreed to in a settlement agreement.  N.J.S.A. 2A:34-23(c) allows for modification of the amount of LDA, but it also prohibits modification of the term of payment except in the case of the broadly termed “unusual circumstances.” The Appellate Division recently took up this issue in the unpublished (not precedential) decision of Rothfeld v. Rothfeld.  There, the parties entered into a settlement agreement providing the Wife with four years of LDA, at $500 per week.  Also contained in the settlement agreement was the Wife’s representation that she would be able to continue the standard of living that she enjoyed during the marriage because, in addition to her alimony payments and assets received via equitable distribution, she was able to earn income.Continue Reading Extending Limited Duration Alimony – Strong Proofs Required

In an interesting unreported decision in the matter of Valente v. Valente, on January 27, 2009, the Appellate Division reversed the award of permanent alimony to the wife after an 11 year 9 month marriage.  To view the full text of the case, click here.

The relevant facts are as follows:  During this 11 3/4 year marriage, the court deemed that the marriage was "traditional"  in that the husband was the sole income earner while the wife was the homemaker and caretaker of the three children. The husband  was a successful businessman who owned fifty percent of an insurance agency. He earned an average of $323,000 over three years prior to the filing of the complaint not including perquisites addressed brief in the opinion.  The wife had  a high school degree and worked in the clothing industry after high school until just before the birth of her first child, earning about $24,000 per year.

In reversing the aware of permanent alimony, the Appellate Division held:

"In our view, alimony of limited duration is appropriate in this case. The marriage of eleven years and nine months was of intermediate length. Considering plaintiff’s age and intelligence as well as the fact that her children are both of school age, we see no reason why she cannot obtain employment within a reasonable time, and an award of limited duration alimony will give her incentive to do so. Moreover, at the end of a limited alimony term, plaintiff may seek permanent alimony or an extension of limited alimony if her earnings are insufficient to maintain her lifestyle without alimony."

Continue Reading Appellate Division Reverses Award of Permanent Alimony Granted in an 11 Year 9 Month Marriage