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Health insurance costs are a significant financial obligation for most Americans, but couples going through a divorce tend to feel the financial strain more acutely. Employer-provided health insurance plans only cover family members, such as the employee’s spouse or children. That means that once a couple is divorced, the ex-spouse can no longer be covered under the employee’s family insurance plan, since they are no longer considered family members. Several options exist for either maintaining or obtaining new health insurance coverage; some of them are discussed below.

Obtaining New Health Insurance Coverage After Divorce

After a divorce, an ex-spouse who was covered by the other spouse’s insurance plan will need to obtain his or her own health insurance coverage. Separate health insurance plans are typically more expensive than family plans, so it is important to keep in mind that health insurance costs are likely to rise after divorce and plan for it accordingly throughout the divorce process.

COBRA, the Consolidated Omnibus Budget Reconciliation Act, is a federal program that allows people in certain situations to maintain health insurance coverage once it has been lost. You may be more familiar with COBRA as a health insurance option for people who have lost a job, but it also allows former spouses to keep their insurance coverage after the divorce. COBRA coverage is temporary, usually a maximum of 36 months, and the premiums are often significantly higher than they were under the family plan. Continue Reading →

New Jersey law requires that parents of children who are divorced or separated from the other parent receive permission before removing a child from the state. The reason for the law is that one parent removing a child from the state often makes it difficult for the other parent to spend time with the child. The state is charged with making decisions in the best interest of the child, and it finds that parenting time with both parents in usually in the child’s best interest.

Non-Custodial Parent Consents

New Jersey law depends on whether the parent wishing to move the child is the custodial or non-custodial parent. A non-custodial parent may move out of the state, without the child, without permission. The custodial parent, however, must obtain permission to move. If the other parent consents to the move, the child can be removed from the state without going through a legal proceeding, though it can be helpful to have written permission signed by each parent.

Court Order Required

If, on the other hand, the other parent does not give permission for the child to move out of state, the parent requesting to move will need to go to the court for permission. In order to obtain a court order permitting a child to leave New Jersey, the custodial parent must show a good faith reason for the move and show that the move will not be against the best interest of the child. Continue Reading →

There are different “filing status” options for a person filing a tax return. The options include: single, married filing jointly, married filing separately, head of household, or qualifying widow. In order to file a tax return as a married person, you must have been married on the last day of the tax year (December 31st). Divorce cases often last several months or sometimes years before the divorce is final, during which time the parties are still married. Therefore, a couple in the middle of a divorce may choose to file a joint tax return.

 

Filing a joint tax return often (though not always) saves a couple money on the amount of taxes that they owe. The downsides of filing a joint tax return are that it requires both spouses to agree to it and that each spouse will be jointly and severally liable for the taxes. Joint and several liability means that either party can be held liable for the entire tax burden should the other party fail to pay. The IRS offers some protection against this, for the “innocent spouse.”

 

Agreeing To File Jointly

Usually both parties must agree in order to file a joint return. In New Jersey, however, one spouse may be forced to file a joint tax return. In Bursztyn v. Bursztyn, the court set forth five factors to examine to determine whether it can compel a party to file a joint tax return. First, the court will see whether there is a financial benefit to filing a joint return. Next, it will look to see if there is evidence of previous fraudulent tax return. Next, it will consider whether the person wishing not to file a joint return earned income during the marriage and ascertain the reason why he or she does not wish to file a joint return. Finally, the court will determine whether there are enough assets to permit the couple to cover the cost of filing separately. Continue Reading →

What Government Agency enforces a NJ child support order?

The New Jersey Probation Division is tasked with enforcing New Jersey child support orders.

What happens if NJ child support is paid through the New Jersey Probation Department and the obligor fails to pay?

If the obligor fails to make scheduled child support payments, an enforcement hearing may be scheduled to deal with the issue. At the hearing the parents will typically present evidence of their financial situation. The obligor is required to attend the hearing, and if he or she fails to do so, a bench warrant may be issues for his or her arrest. If an arrest warrant is issued, the obligor’s driver’s license may be suspended as well.

Who conducts an enforcement hearing and what is the process?

At the hearing the case will be heard either by a Hearing Officer or a judge. Hearing Officers can make recommendations, but if either party objects to the recommendation a judge will hear the case instead. If neither party objects to the Hearing Officer’s recommendation, a judge will simply review the recommendation and if satisfied, will sign off on it, making the recommendation an enforceable order. Continue Reading →

How is cohabitation defined under the amended alimony statute in NJ?

The amended alimony statute which was signed into law on September 10, 2015 defines cohabitation as a “mutually supportive intimate personal relationship” whereas the parties have taken on “duties and privileges that are commonly associated with marriage.”

Does a person have to maintain a single household with their paramour in order for a court to find cohabitation in NJ?

The amended alimony statute states that two people do not have to maintain a single common household in order for a court to find cohabitation.

What happens if a court finds cohabitation in New Jersey?

The amended statute states that alimony may be “suspended or terminated” if a court finds cohabitation. Previously, case law in New Jersey stated that a court had the option to modify as well as terminate alimony upon cohabitation. However, under the amended statute it seems a court in New Jersey only has two options if it finds cohabitation, which are to suspend or terminate alimony. Modification of alimony seems to no longer be an option. Continue Reading →

What are the different types of alimony in NJ?

There is Open Durational Alimony (replaced permanent alimony in the amended statute and applies to marriages twenty years or more), Rehabilitative Alimony (granted to a litigant for a short term to assist them to become financially self-sufficient through education and training), Limited Duration Alimony (granted to a litigant for a period of time in which it would practically take them to improve their earning ability to a point where Limited Duration Alimony is no longer appropriate), Reimbursement Alimony (granted to a litigant who supported the other litigant achieve his or her education and they expected to benefit from the earning ability produced by that education) and Pendente Lite Alimony (temporary support paid during the of the divorce litigation). Continue Reading →

Definition of Emancipation of a Child

Emancipation is the legal act of a minor becoming free from the custody and control of a parent or guardian. Likewise, the parent or guardian is free from responsibility toward the child.

Emancipation does not automatically occur when a child has reached 18 years of age, as many people believe. In fact, in New Jersey it typically occurs much later for reasons we will discuss below.

Child Support – When Is it Terminated?

In most instances we use the term ‘emancipated’ when discussing the termination of child support payments. At the outset it’s important to understand that in New Jersey child support payments do not automatically end when a child reaches 18.

How is a Child Emancipated?

Since there is no set age at which a child is automatically emancipated in New Jersey, emancipation can occur in two different ways. The parents divorce settlement agreement can specify when emancipation will occur. If not provided for in the settlement agreement, a court will declare a child emancipated if it determines that the child is outside the ‘sphere of influence’ of the parents. Determining whether a child is outside the ‘sphere of influence’ is fact sensitive, but generally means that the child lives independently, without depending on the parents for support. Continue Reading →

NJ Child support obligations are extremely serious, not just because it goes to give the child food, clothing and shelter, but because the consequences for failing to pay support can have serious impact on the payor’s life.

MECHANISMS TO ENFORCE PAYMENT AND PENALTIES FOR NON-PAYMENT

  • The court can give you a judgment on arrears calculated by the court. Filing this judgment places a lien on any real property of the payor and shows up on credit reports. If the real property is sold, your lien must be paid in full.
  • Garnish payor’s paycheck, meaning that the child support is automatically taken out of the paycheck for you.
  • If the payor does not appear at a court hearing for enforcement of NJ child support, a bench warrant can be issued and the payor can be put in jail. This incarceration can be done on work release, or without work release. This could also result in the payor’s driver’s license being suspended. Incarceration does not eliminate the child support that is due or becomes due.
  • When an arrearage in child support is over $2,500, the payor can be denied issuance or renewal of a passport.
  • The court can execute against the payor’s assets based on a judgment for arrears. This includes include bank accounts and other assets.
  • If more than $100 is owed in arrears, this can be reported to credit bureaus and will impact the payor’s credit worthiness.
  • Tax refunds and homestead rebates can be taken to apply toward arrears in excess of $500, though in public assistance cases the amount is $150.
  • If the payor has failed to pay child support for six months or more, they can have their driver’s license, professional license and recreational licenses suspended.
  • Lottery winnings of $600 or more can be seized if the payor owes $1,000 or more in child support arrears.
  • Levies can be placed against workers’ compensation and insurance claims of the payor.
  • Project Save Our Children: A federal program that assesses misdemeanor or felony charges for non-payment of child support under the following circumstances:
  • Refusing to pay child support for a year or more
  • Traveling to another state to avoid payment of child support obligations
  • Owing $5,000 or more in child support

Continue Reading →

New Jersey Child Support Guidelines are extremely complicated, put together in about a hundred pages of principles, standards and considerations. The schedule of child support obligations, which is one of many appendices to the statute, is merely a starting point in determining parents’ child support obligation. The premise underlying the lengthy list of considerations for calculation of child support is that both parents have an obligation to support their child.

As one would expect, child support starts with a calculation of both parents combined net income. This includes regular income, pensions, retirements, interest, disability, basically, income from absolutely all sources. When you deal with a regular paycheck every week, and nothing more, the determination of combined net income is simple. But where there are numerous sources of income or self-employment, there are certain expenses used as deductions to that income to determine the net income. Gross, of course, is all income received prior to reducing it by taxes and certain allowable expenses. Net income is the amount after those deductions.

WHAT BASIC NJ CHILD SUPPORT IS SUPPOSED TO PAY

The purpose of child support is to pay certain of the child’s expenses, not the expenses of either parent. The basics include:

  • Food
  • Clothing
  • Shelter
  • Entertainment
  • Unreimbursed healthcare expenses up to $250 annually per child
  • Transportation costs
  • Various other items

Continue Reading →

College expenses cause financial difficulty for most families, but they can be especially burdensome for families with divorced parents, where the parent’s income supports two households. Even still, New Jersey Courts regularly require divorced or separated parents to contribute to the cost of a child’s college expenses.

The Newburgh Factors: Contribution to College Costs and Divorce in NJ

In determining whether and how much a parent must contribute to his or her child’s higher education, the court will look at a number of factors. A New Jersey Supreme Court decision, Newburgh v. Arrigo provides the framework for determining how much a parent must contribute. A judge will consider the so-called  “Newburgh Factors” listed below to determine the extent of a parent’s financial contribution to a child’s college education:

  • Whether a party, if not separated, would have given to the cost of the student’s requested higher education
  • The result of the values, goals, and background of the parent on the reasonableness of the expectation of the student receiving a higher education
  • The amount of the funding demanded of the parent by the student
  • The parent’s ability to pay the requested contribution
  • If the demanded contribution relates to the type of school or course of study desired by the student
  • The parties’ monetary means
  • The student’s commitment to and ability for the demanded higher education
  • The financial means of the student, including any assess being held in trust for his or her benefit
  • The student’s capability to make income during vacation breaks or the academic year
  • The student’s capability to obtain monetary aid in the form of loans or grants
  • The student’s connection to the parent being asked to contribute. This includes whether there is mutual fondness and shared goals between the student and the paying parent and if the student is responsive to the paying parent’s instruction and direction
  • The connection of the education demanded to any prior training and to the student’s long-term objectives

Continue Reading →

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