Articles Tagged with retirement

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I would like to begin this blog post by thanking all those who are currently serving in the United States military and to all Veterans  that have served. Currently, there are approximately 22 million veterans of the U.S. armed forces and 1.5 million currently serving. On September 15, 2017, the U.S. Supreme Court issued a ruling potentially affecting their military families. The Supreme Court unanimously ruled in May, 2017, in the case of Howell v. Howell (No.15-1037) that a state court may not order a veteran to indemnify a divorced spouse for the loss in the divorced spouse’s portion of the veteran’s retirement pay caused by the veteran’s waiver of retirement pay to receive service-related disability benefits.

The facts surrounding case involved an Arizona court awarding Sandra Howell half of Air Force veteran John Howell’s retirement pay when the couple was divorced in 1991. Mr. Howell later became eligible for disability benefits in 2005 and elected to waive $250 of his $1,500 a month in retirement pay, which is taxable, in favor of $250 monthly disability pay, which is not taxable. The election reduced his ex-wife’s monthly divorce settlement by $125 and she went back to court requesting her half of what his pay would have been had he not chosen the election.  She won and the Arizona Supreme Court affirmed that decision.  Mr. Howell appealed the case to the United States Supreme Court which reversed the state Supreme Court’s decision.file000366641089-300x225

The Supreme Court further affirmed and clarified the prior decision that retirement pay that is received from the military as disability payments that commenced solely because of a service member’s disability is not payable to a former spouse. Mansell v. Mansell, 490, U.S. 581, 584 (1989). The Uniformed Services Former Spouses’ Protection Act (USFSPA) precludes a state court, within the context of a divorce proceeding, from dividing military disability retirement pay pursuant to state property laws because the USFSPA authorizes that only disposable retired or retainer pay be counted as marital property for equitable distribution. 10 U.S.C. § 1408(a) (4) and (7).

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There are some points where federal law intersects with or affects the economic consequences of pending or finalized divorces. Recently one of those point of intersection was the topic Job-Application-SSN-300x225of conversation of a prospective client. Her concern I am sure are shared by many. The question dealt with Social Security and how one computes the 10 year requirement for derivative benefits. Continue reading

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In September 2014, the New Jersey Legislature amended this State’s statute on alimony.   Among thefile0001270953716 changes that the new alimony statute contains was a provision related to retirement.    The addition that the Legislature made to the alimony statute to include a provision for alimony is lengthy.  N.J.S.A. 2A:34-23(j) now provides that alimony may be modified or terminated “upon the prospective or actual retirement of the obligor.”   Continue reading

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On September 10, 2014 the New Jersey Legislature amended the alimony statute, N.J.S.A. 2A:34-23.   The Legislature provided for various standards related to a supporting spouse’s retirement,file0001270953716 whether the obligor sought to retire early or whether the obligor spouse sought to retire at full retirement age.   N.J.S.A. 2A:34-23(j) provides that “Alimony may be modified or terminated based upon the prospective or actual retirement age of the obligor”.  Moreover, “There shall be a rebuttable presumption that alimony shall terminate upon the obligor spouse or partner attaining full retirement age, except that any arrearages that have accrued prior to the termination date shall not be vacated or annulled.   Continue reading

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bill has passed the New Jersey Senate and Assembly and which is now before the governor that intends to amend the current alimony statute, N.J.S.A. 2A34-23.   At present, the alimony statute allows a court to consider (1) permanent alimony; (2) limited duration alimony; (3) rehabilitative alimony; and (4) reimbursement alimony.   Under permanent alimony, there is technically no end to alimony until the payor or payee spouse dies or the payee spouse remarries.   The new proposed alimony statute would replace “permanent alimony” with “open durational” alimony. Continue reading

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According to a March, 2013 publication from the National Center for Family & Marriage Research at Bowling Green State University, authors Susan L. Brown and I-Fen Lin discussed the divorce rate for adults over the age of 50 in their article elderlyentitled “The Gray Divorce Revolution: Rising Divorce among Middle-aged and Older Adults, 1990-2010”.  Continue reading