As we discussed in our previous posts, there are 4 types of spousal support or alimony we discuss during divorce mediation in New Jersey:

1. Permanent
2. Limited Duration
3. Rehabilitative
4. Reimbursement

Today we’re going to cover the last type of alimony on our list: reimbursement.  The best way this NJ Divorce Mediator can think to explain what reimbursement spousal support is, is through an example.

A couple has been married for 10 years, during which time, the husband attended medical school and did his residency to become a surgeon.  The wife worked three jobs and sacrificed material gains in order to put the husband through school including driving a 1985 Honda Accord and eating Spam and Ramen noodles for dinner 6 nights a week (on the 7th night they got pizza).  Now the husband and wife are getting a divorce and the husband has his medical license and anticipates earning $300,000 a year in a private practice.  In this case, the wife may be entitled to reimbursement alimony to not only repay her for the monetary contributions she made to the husband’s education but also to recognize the loss of that earning potential and the sacrifices she made along the way (like six nights of Spam, as delicious as it may be).

As partners in a marriage, we often knowingly do things that place our needs second in order to make sacrifices for the common good.  We like to think that this is our life partner and we’ll be together forever and so what’s a little short term sacrifice for a stable long-term future?  Sadly, based on your searching for a NJ divorce mediator, that is not always the case.  In our example, the wife sacrificed her present for a chance at a great future with her husband.  With their divorce, that future has disappeared.  Reimbursement spousal support looks to compensate the wife for the money she invested in the husband’s schooling, the material comforts she sacrificed while supporting him during the 8 years of school and residency as well as compensate her to a certain extent for her husband’s future earning potential.  NJ law recognizes that each party is entitled to benefit from the increased standard of living that a degree in medicine will surely bring and through reimbursement alimony those adjustments will be made.

Much like with all other types of spousal support in New Jersey there is no formula for calculating this.  That is why I can’t emphasize enough how important it is you seek mediation services and the help of an Accredited Professional NJ Divorce Mediator.  By working out your differences in divorce mediation instead of a courtroom, you and your soon to be ex-spouse can come to an agreement that works for both of you and not one that works for a judge or your lawyer.  My name is Joseph Dillon and I am an Accredited Professional NJ Divorce Mediator and I invite you and your spouse to come in for a consultation to learn more about how divorce mediation can help you determine what an appropriate amount and duration of alimony or spousal support might be in your particular case.

As we discussed in our previous posts, there are 4 types of spousal support or alimony here in New Jersey:

1. Permanent
2. Limited Duration
3. Rehabilitative
4. Reimbursement

Today we’re going to learn more about what this NJ mediator feels is the most underused type of alimony: rehabilitative.

Typically couples who engage in divorce mediation think that spousal support comes in only one flavor and that’s the typical “check in the mail” in which one spouse pays the other spouse and set monthly amount for a pre-determined period of time until one of the parties encounters a “significant change in circumstances.”  As an Accredited Professional NJ Divorce Mediator with an MBA in finance, I try to help parties expand their options by presenting to them alternatives which they might not have previously considered and rehabilitative alimony is a perfect example of that.

Rehabilitative spousal support simply put is monies paid from one party to the other for the express purpose of assisting the receiving party better their own circumstances through education or job training.  The theory being that is two parties have a wide gap in their incomes and earning potential, that gap can be reduced by bringing the lagging party up to speed through additional training or education.  In these cases, rehabilitative spousal support is paid in addition to permanent or limited duration alimony.  Why is this you ask?  The idea behind rehabilitative alimony is so that an individual can get job training and better their future financial circumstances but they still have to pay their bills while they attend classes so the rehabilitative spousal support is paid in addition to permanent or limited duration alimony.  And while most parties are reluctant to pay any kind of spousal support, let alone two different types of alimony but let’s take a closer look as to why this NJ mediator thinks it can work in certain situations.

A NJ couple has been married 23 years with 2 children and husband has stayed home since day one with the kids.  Wife is 45 and a CFO earning $250,000 and husband is 45 and used to be a computer programmer doing work in C++.  Now the demand for C++ programmers is quite low therefore the husband’s job prospects are quite low.  Since this a long term marriage, we’re looking at permanent spousal support in which the parties have negotiated the duration to be 20 years.  The wife thinks 20 years is quite a long time to be paying alimony so instead she offers 8 years of regular spousal support and 4 years of rehabilitative alimony in which she will pay for her ex-husband to attend a four-year university to get a degree in nursing and a few more years to help him get on his feet.  He improves his earning potential significantly as nurses are in high demand, she reduces her duration of alimony which as a CFO she feels is a good deal and everyone is happy.  As there are no formulas to calculate spousal support, as long as the parties think this is a good idea, then it works.

By working with a Accredited Professional NJ Divorce Mediator such as myself, I’ll help you and your spouse expand your options and help work together to come to an agreement that works in your particular situation.  My name is Joseph Dillon and if I can be of any help to you and your spouse, please feel free to call me at (908) 864-2177 or e-mail me and I’d happy to sit down with you and your spouse for a consultation in one of our many Central and Northern New Jersey office locations.

In the last post on the Equitable Mediation Services blog, we discussed the four types of spousal support (formerly known as alimony) and how since there is no formula for calculating spousal support, it’s best to work with a divorce mediator in New Jersey who can help you and your spouse determine what a fair and equitable amount of alimony would be.

As a refresher, in NJ, the 4 types of spousal support are:

1. Permanent
2. Limited Duration
3. Rehabilitative
4. Reimbursement

In today’s post, we’re going to focus on limited duration alimony as like with permanent spousal support, the length of your marriage is a factor when deciding if alimony is going to be limited in duration.  Limited duration spousal support is usually reserved for marriages lasting 10 years or less and like all other types of alimony, there is no formula for calculating it so mediators use a number of data points to help couples with the discussion of what might be appropriate in their particular cases.

Now there is much debate in mediation circles what an appropriate duration alimony should be in these types of cases, but as a general rule (remember – this is a blog and is not intended to give legal advice as these are just the experiences of a single NJ divorce mediator) generally, limited duration spousal support for short term marriages lasts 1/2 to one year for each year the couple was married.  Is this always the case?  Absolutely not. Much like with permanent alimony, the incomes of the parties, their ability to work, education level and a host of other intangible factors come in to play when determining an appropriate amount of spousal support.  That why it’s always best to work divorce mediator in New Jersey who can help you work together to come to what you both feel is a fair and equitable amount as remember – there is no formula.

For limited duration spousal support, much like with permanent alimony, the thought is you both contributed to the marriage equally, even if one of you contributed financially and one of you contributed in non-financial ways.  Especially if you have children together, it doesn’t do either of you any good if one of you is living well and one of you is destitute.   Whether you agree with the spousal support laws or not, they are intended to help both parties for a certain period of time after they are divorced, have a chance at a similar lifestyle, even if that lifestyle is lower than the one they enjoyed together as a married couple.  Then after alimony has ended, it is up to each of the parties to continue to work on developing their post-marital lifestyle which is something we stress in divorce mediation as like the old saying goes “I could get hit by a bus tomorrow” so it’s always best to make every attempt to be self-sustaining.

Should you have any questions about spousal support in your particular case, please feel free to contact me, NJ divorce mediator Joseph Dillon at (908) 864-2177 or via e-mail and I’d be happy to meet with you and your spouse to help you determine what an appropriate amount of alimony might be in your particular case.