NJSBA Family Law Section

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  • 1.  Voluntarily Modify Alimony

    Posted 01-05-2016 02:48 PM

    Hello All,

    Parties divorced less than one year ago. Wife seeks to voluntarily modify alimony set forth in  PSA as she no longer wants the alimony but rather, a lump sum totaling less than the total alimony.  Husband is willing to make this payment. Wife does not want to pay for attorney to do this.

    As Husband's counsel, do I need to file a motion to alter the judgment? What is the proper procedure to modify?

    Thanks for the help.

    ------------------------------
    Mechelle Buksar-Musgrove, Esq.
    Woodbridge NJ
    (732)713-4339
    [email protected]
    ------------------------------


  • 2.  RE: Voluntarily Modify Alimony

    Posted 01-05-2016 02:51 PM

    I believe it is as simple as filming a consent order signed and notarized by both parties.




    Original Message


  • 3.  RE: Voluntarily Modify Alimony

    Posted 01-05-2016 02:52 PM

    do a consent order

     

    Alice M. Plastoris, Esq.

    82 Speedwell Avenue

    Morristown, New Jersey 07960

    973-538-7070

    973-538-7088 Fax

    [email protected]

     




    Original Message


  • 4.  RE: Voluntarily Modify Alimony

    Posted 01-05-2016 03:32 PM
    Hi Mechelle:

    The bigger question is, why does she want to change alimony so soon after the divorce? Is she planning on remarrying? Cohabiting? Getting a better job? Make sure you cover yourself. If you are comfortable with what the parties want to do, and you are sure the husband isn't being "had" by this new arrangement, then you can prepare a consent order for them both to sign. She can proceed pro se. Good luck.

    Roz

    Rosalyn A. Metzger LLC
    Attorney-Mediator
    P. O. Box 5104
    One Leigh Street
    Clinton, New Jersey 08809
    (908) 238-0099
    www.mediate.com/rmetzger

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  • 5.  RE: Voluntarily Modify Alimony

    Posted 01-05-2016 04:22 PM
    Agree with what Rosalyn said.... Be sure to get a CYA letter here.

    If ex remarries or has sudden increase in income, or your client loses his job - he's not getting any of that lump sum back. Make sure he fully understands that. And make sure the issue of taxability is addressed; is the lump sum going to be deductable / income?

    Related question - when doing a lump sum buyout on alimony, what formula do most use to take this into account? More or less formal?

    For example, assuming a buy out of a $1000 per month five year obligation:

    Monthly x # of months x 35% deductability x 20% present value reduction x payor waives reduction / termination -
    1000<x-tab>    </x-tab>x 60 = $60,000 x 35% taxes = $39,000 x 80% present value = $31,200 x 25% "risks" = $23,400

    Or, I just had a fairly experienced judge say (informal, settlement conference in chambers) 1/3 of gross, or $60,000 x .33 = $19,800 lump sum





    <x-sigsep>

    David Perry Davis, Esq.
    ----------------------------------------------------
       www.FamilyLawNJ.pro
    ----------------------------------------------------
    112 West Franklin Avenue
    Pennington, NJ 08534
    Voice: 609-737-2222
    Fax:    609-737-3222

    </x-sigsep>



    Original Message


  • 6.  RE: Voluntarily Modify Alimony

    Posted 01-05-2016 04:26 PM

    Hi,
    I have done these modifications numerous times. Prepare a consent order,  with signatures being notarized,  send to wife to sign with letter, recommending to consult attorney. If she does not see an attorneys ask her to sign before a notary and return to you . Your client then signs and you send it to the judge. If payments are via probation add a provision that probation closes account.
    Also, make reference in the order as to the tax consquences. I presume the lump sum is tax free.
    Good luck




    Original Message