If you are paying permanent alimony to a former spouse, you should be aware of the grounds for seeking a court order reducing your obligation versus the suspension of your obligation. Generally, a payor of alimony is entitled to a reduction in alimony payments if there has been a substantial change in his or her financial circumstances after the entry of the last judgment or order awarding alimony. However, this substantial change must not have been contemplated at the time of judgment or order, and the change must also be material, involuntary, and permanent in nature.
For example, if a payor’s income dropped to half of what is was for reasons beyond his or her control, and the reduction was permanent in nature, the payor would be entitled to seek a court order granting him or her a reduction in the alimony obligation. In general, if such a material reduction in income exists for one year or more, such a substantial change is considered by the courts to be of sufficient permanence to grant a permanent downward modification in alimony payments.
However, in a situation where the payor becomes unemployed involuntarily on a temporary basis (less than one year) and demonstrates the inability to pay alimony, the court should suspend the payment obligation rather than grant a permanent downward modification of payments. Further, under such circumstances, the payor should not be subject to the accrual of arrearages. This is especially true where the evidence supports a finding that the payor is diligently seeking re-employment.
In the event of a substantial change in your financial circumstances, whether a reduction in income, a layoff, or otherwise, you should promptly consult with a family law attorney. It may be necessary to take prompt legal action to protect you from being subjected to a contempt of court proceeding and the accrual of alimony arrearages.