Articles Tagged with settlement

The Appellate Division in the recently published case of Bermeo v. Bermeo, A-1312-17, addressed a post-judgment application by a supported spouse seeking to modify alimony based  on her inability to maintain the marital lifestylefile000142175851-300x230 after entering into a marital Property Settlement Agreement and the lack of findings by the court of what the marital lifestyle was pursuant to Crews v. Crews, 164 N.J. 11 (2000).

In this matter, the parties divorced in 2015 after entering into a Property Settlement Agreement that was incorporated into their Final Judgment of Divorce.  The issue raised post-judgment by the Plaintiff, the supported spouse, was the extent of alimony that she was receiving and her inability to maintain a lifestyle comparable to the marital lifestyle.   During the marriage, the parties had a middle class lifestyle.  The Plaintiff was a homemaker while the Defendant earned an average income of $471,000 in the last several years of the marriage.  By the time of the divorce, however, the Defendant had changed jobs.  The parties negotiated a property settlement agreement through counsel that provided that the Husband would pay $4,000 per month in alimony.  The Plaintiff was earning $6,000 at the time of the divorce but the Agreement was based on an imputed income to her of $25,000 per year.  The Agreement also was based on an imputed income of $160,000 to the Defendant.  In addition, the Agreement required the Defendant to pay a percentage of supplemental income earned by the Defendant in the form of commissions, deferred compensation, stock options and bonuses.   The Agreement expressly stated that neither party would be able to maintain a lifestyle that was reasonable comparable to their marital lifestyle and that the parties “freely and voluntarily waive determination of the joint marital lifestyle at this time.”

Plaintiff in 2017 filed a post-judgment application seeking an increase in alimony to $6,000 per month, arguing that the Defendant was voluntarily underemployed and that alimony should be based on imputed annual income of $220,000 to Defendant.  After the divorce, Plaintiff had not received supplemental alimony because the Defendant earned $120,000 which was less than the $160,000 of imputed income upon which alimony was based.  The family court judge denied the Plaintiff’s application without ordering a plenary hearing or additional discovery and without making a finding as to marital lifestyle pursuant to Crews v. Crews.  The Plaintiff appealed.

Thomas Jefferson opined in his “Retirement Papers” that, “[G]overnment governs best that governs least”. It was a wise observation in the time of the patriots that established this great nation and has significant import today. We have just experienced our democracy in action as mid-term elections across this country registered a historically significant vote of no confidence in the direction of our country. Although this blog is dedicated to informing people on the status of Family Law in New Jersey, a momentary departure from that goal seems warranted to examine what lesson can be learned from the recent mid-term election results  that can be applied to a litigation strategy. After all, family law is the product of governmental action, and changes in government attitude and the public’s expectation of their government has a profound influence on the law. Continue reading ›

Governor Chris Christie signed into law the New Jersey Collaborative Law Act (the “Act”) on September 10, 2014. The intent of the legislation is to provide uniformity in collaborative law throughout the State in family law disputes. Collaborative law affords parties a way to resolve family law disputes without intervention of the courts. The parties work with a team of professionals to reach a settlement agreement. Continue reading ›

file0001073676107It is not always commonplace for case law in the State of New Jersey to come down in quick succession that will totally change the landscape of an area of law.  However, that is just what has happened with regards to Alternative Dispute Resolution (ADR) thanks to the recent decisions handed down by the Supreme Court of New Jersey and the Appellate Division in the past two (2) months.  Continue reading ›