Changes on alimony process in the state of MA - Alimony Reform Act
Anyone paying or receiving alimony in Massachusetts should be
aware of important changes that may affect them beginning year 2013 as
a result of the new Alimony Reform Act. Alimony is a form of support
paid by one spouse to another. The Act, which became effective last
year, impacts past and future divorces.
The Act created three major changes to the law:
It set limits on the duration of alimonry based on the length of the
marriage and the reason for the need (previously, alimony was usually
lifetime).
It enables the judge to terminate, suspend or reduce alimony if the
recipient is cohabitating.
It enables the judge to terminate alimony upon the payer’s retirement.
Each of these changes has its own nuance and exceptions, so court
decisions will turn on the facts of each case and a judge’s
interpretation. Due to the act’s infancy and the absence of established
case law, there is little to guide us yet. In view of the changes, many
parties are negotiating settlements in order to avoid the uncertainty
of court.
Length of the marriage key
Under the Act, the length of the marriage, measured in months,
determines the length of the alimony term. The first day of marriage is
obvious, but the last day of marriage is the day that the divorce
complaint is served. Once the length of the marriage is established,
then the length of the alimony term can be determined.
Measuring the duration of alimony is tricky. It’s unclear, for example,
whether the first day of alimony occurs while the divorce is pending,
after the divorce judgment is entered, or some other date. Since
alimony is taxable income to the recipient and deductible to the payer,
some judges have said that alimony starts Jan. 1 of the year the
alimony becomes income to the recipient and deductible to the payer. If
the first day of alimony is uncertain, we can’t calculate with
certainty when alimony ends.
The process of terminating alimony’s duration first requires this
two-pronged calculation and then vigilance of the calendar. In the
legal world, short-term, mid-term and long-term marriages are different
and the trigger dates for modifying the alimony term varies.
When to seek a
modification
The Act establishes when alimony payers can modify their obligation to
shorten their alimony term and establishes a series of trigger dates.
Those married between:
1 and 5 years can now file in court (as of March 1, 2013)
5 and 10 years can seek a modification of their alimony beginning March
1, 2014.
10 and 15 years can file beginning March 1, 2015; and
15 and 20 years can seek a modification in September 2015.
Impact of cohabitation
The act also addresses the impact of a recipient’s cohabitation on
alimony. Before the act took effect, cohabitation did not affect
alimony. Now, alimony recipients should think carefully about living
with another person and how finances are handled between them. Living
with a contributing partner now risks the mandatory loss, reduction or
suspension of alimony if certain factors are met. Because of the act,
judges balance the needs of a burdened alimony payer and the financial
need of the former spouse, when deciding whether to terminate, reduce
or suspend alimony.
Retirement
Retirement is the third major changes in the Alimony Reform Act.
Retirement age – usually 65 or 66 – is defined by the Social Security
Act and is based on date of birth. Before the act, alimony was
generally a lifetime obligation due until the death or remarriage of
the wife or the death of the husband. Although a retiring person could
pay less alimony as his/her income declined, the individual was still
obligated to pay about 33 percent of the gross income beyond
retirement. Under the act, a retiring person’s alimony obligation ends
at retirement unless the judge determines that an exception warrants a
longer term.
Whether you receive or pay alimony, it is important to know when it
will end. Will it be the pre-determined timeframe or retirement? Might
cohabitation present an opportunity for a payer to stop paying?
Thinking through these and many other critical questions can help you,
your former spouse, and your attorneys determine an acceptable and
civil resolution to your own situation and may eliminate the need for
court intervention.
- Hindell S. Grossman
(April 2013). Newton Tab, B2