CSG Law Alert: Changed Circumstances After Divorce? How to Modify a Financial Obligation
Life circumstances can change significantly after a divorce. While the terms of a Marital Settlement Agreement may have been fair and workable at the time it was signed, unexpected changes can sometimes make ongoing financial-support obligations difficult or unrealistic to maintain.
New Jersey courts generally favor the enforcement of agreements that divorcing parties entered into voluntarily. However, courts may modify certain financial support obligations when fairness and equity require it. Under New Jersey family law, a court may consider modifying an existing financial obligation or court order if one party can show that a substantial change in circumstances has occurred since the original arrangement was established.
Not every financial change will justify a modification. Courts typically look for changes that are significant, ongoing, and not anticipated at the time of the agreement. Temporary issues or future events that have not yet occurred may not be enough to support a modification request.
Examples of circumstances that courts may consider substantial include:
- A significant increase or decrease in income
- A serious illness or disability that developed after the divorce
- Remarriage or cohabitation of a supported spouse
- Retirement
- Changes in a child’s financial, educational, or medical/health care needs
The party requesting a modification must first demonstrate that a substantial change in circumstances may exist. If that threshold is met, the court may allow additional financial discovery and determine whether further proceedings or a hearing are necessary.
Because changes in financial circumstances are highly fact-specific, courts review each case individually, and there are often important strategic considerations when seeking or opposing a modification.
For further guidance and answers to questions regarding this important topic, please contact author of this article or the Family Law Group at CSG Law.