The calculation of alimony payments upon divorce can be a tricky undertaking. In New Jersey, a family court judge will look at the financial lives of both spouses, and then apply an appropriate set of factors to determine an appropriate payment amount. Of course, the judge must have access to the most accurate information in order for the calculated amount to be fair and reasonable. What happens if one of the parties under reports his or her income? What if one of the parties quits his or her job, or takes a lower paying job for the purposes of avoiding the payment of alimony? Unfortunately those situations happen in some divorce cases. State law and case law provide us with guidance on how New Jersey family court judges should handle these cases.
Elrom v. Elrom
In the case of Elrom v. Elrom, the court decided a case that involved a spouse’s underreporting of income. In that case, the Defendant reported his income from work as a software engineer and technical writer as $120,000 per year, and the Plaintiff reported $80,640 in previous income per year for her work as an attorney. The parties each alleged that the other party either did earn, or could have earned more than the reported income.
The Plaintiff’s reported income of $80,640 was the salary she made at a New Jersey law firm working as an associate. Prior to having children, the Plaintiff had made substantially more, $175,000 per year, working at a New York City law firm. After having children, the Plaintiff left work for a time to take care of her children, and then worked part-time (approximately 26 hours per week) for $67.50 per hour. Then, she took on a full-time job at the New Jersey law firm making $80,640 per year. She was unemployed at the time of the trial. Continue Reading →
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