NJSBA Family Law Section

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  • 1.  Alimony when parties are at age of retirement

    Posted 01-16-2020 08:05 AM

    Colleagues,

    Parties married 33 years. H is 63 and W is 65. W never worked and H is an engineer. H was employed for the past 3 years earning 245k and was recently released (legitimate) from his position with a severance package of $185k. H is in high demand and has already received job offers in the same salary range.

    Parties want to divorce. Home is owned outright and worth about 1.2 million and they have about $750k in retirement assets. Can easily divide the home proceeds and retirement accounts but alimony is, as always, the big issue between them. I want to table an offer of a 10 year term (non-modifiable) of approximately $1,000 per week.

    Based on the numbers and the H's employability, are my expectations within reason or should I be looking for an alternate outcome like a buyout to sever the tie immediately or a different term given their ages?

    Thanks in advance.

    EBH



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    Eric Hannum Esq.
    Lansing and Hannum, PC
    (732)370-9596
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  • 2.  RE: Alimony when parties are at age of retirement

    Posted 01-16-2020 01:26 PM

    Eric, 
    I think a 10 year time frame is too long. The shelf life for employment drops quickly and is often unanticipated. I think people way overestimate their employability in their 60s. 

    I'd say you have a rebuttable presumption to retire in 4 years and the following factors would support ending alimony at retirement age. 

    • The assets of the parties at the time of the retirement application;
    • Whether the recipient has reached full retirement age as defined in this section;
    • Sources of income, both earned and unearned, of the parties;
    • The ability of the recipient to have saved adequately for retirement;Your idea of a buy-out seems reasonable and most likely to keep them out of court in 4 years.  
    • Tom King





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    Thomas King Esq LLC
    45 Broadway,
    Denville, NJ 07834
    973-750-8348
    www.njfamily.law www.njdivorce.law
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    Original Message


  • 3.  RE: Alimony when parties are at age of retirement

    Posted 01-16-2020 03:39 PM

    What is the customary retirement age in that field?  Does it vary or is it the typical SS retirement age? Based on what you said, I would go with the 4 years that Tom suggested.  H should be able to retire at 67 if he wants. Do you represent W?  If H continues working, then alimony continues.  Maybe a stepdown at 67 if W will agree if H truly anticipates still working but "winding down" so as not to work as much or as hard.

     

    If I'm H, I am probably doing the buyout.  Fast and clean and there's enough assets to do so. W gives up any claim if he ultimately works past the age of 67.

     

    Misty A. V. Avallone, Esq.
    P: 609.683.7400  F: 609.921.8982
    E: [email protected]
    www.kingstonlawgroup.com



    Original Message


  • 4.  RE: Alimony when parties are at age of retirement

    Posted 01-31-2020 03:11 PM

    ODA of $1,000 to  $1,200 per week is reasonable and Husband must make his application to Court to terminate alimony once he reaches his full social security age of retirement i.e. 67  years old which will be approximately 4 years of alimony based on Husband's current age of 63. However, if Husband wants to slam the door shut at 67 years assuming it is anticipated he will work beyond his 67th birthday, than Husband may want to offer LDA alimony until he reaches 67 years old and a buy-out of 3 to 5 years more of alimony up front, i.e. $183,750 to $306,250 cash buy-out to terminate alimony at age 67 years old. In my  opinion there should be no discounts for present value or risk factors due to the ages of the parties.

    Faith

     

    Faith A. Ullmann, Esq.

    Certified Matrimonial Law Attorney, NJ

    Faith A. Ullmann & Assoc., LLC

    97 Main St. Newton, NJ 07860

    (973) 579-9700 (phone)

    (973) 579-9707 (fax)

    www.faudivorcelaw.com (website)

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    Original Message