What to do if COVID-19 impacts your alimony or baby assist | Flaster Greenberg PC

As the COVID-19 pandemic shakes our work, home, social and personal lives at a rapidly evolving pace, many families are grappling with unprecedented financial insecurity and uncertainty. This can be even more intimidating and confusing for divorced and separated families, where there are often court-ordered or contracted legal obligations that are being challenged in the wake of these turbulent financial times.

As a recipient of financial contributions related to a divorce or dissolution, it can be daunting to worry about whether your ex-spouse or ex-partner can continue to meet those obligations. These obligations include things like child support, child support, or making other financial contributions to your family such as a child. B. the payment of tuition fees or health insurance premiums. Undoubtedly, people rely on these contributions to meet their needs and the needs of their family, so it is understandable to want reassurance that these contributions will continue.

At the same time, a person who is required by law to pay money to an ex-spouse or ex-partner may experience a decrease in their discretionary income as a direct result of the COVID-19 crisis. In both New Jersey and Pennsylvania, governments have eliminated or severely restricted almost all nonessential business practices, marginalizing much of the working class through no fault of their own. Many people have taken wage cuts, reduced hours, been forced to take PTO or sick leave, or in the worst case, stopped working altogether without pay. When this happens, it can become difficult, if not impossible, to pay all expenses in full and on time, including expenses such as alimony or child support. Many people face the difficult decision of which bills to pay with a limited supply of cash: Do I pay my mortgage in full and cut child support? Do I pay for health insurance and skip my alimony? Should I stop paying my ex until this is over? Can I just do full social distancing and hope this all goes away on its own?

These questions are legitimate, and there are equally compelling arguments on both sides as to how these issues should be addressed. People who rely on an ex’s support want (and need) to get paid, and people who are obligated to support an ex may just not have the funds to turn to.

When you’re on both sides of this equation, it’s important to address the situation early before it spirals out of control. While it may seem premature or perhaps not cost-effective to take legal action, you still don’t want to ignore the situation or engage in self-help mechanisms that will do more harm than good. Below are some options for dealing with any financial complications or disputes with your ex-spouse or ex-partner caused by the COVID-19 crisis.

A good place to start is to open up lines of communication with your ex-spouse or ex-partner. Transparency and honesty go a long way in understanding the situation on both sides. If you and your ex are able to reach a temporary agreement for continued (but possibly reduced) financial support on a short-term basis, you should consult an attorney who can codify that agreement into an appropriate legal document. This allows you and your ex to settle amicably without court intervention, saving you both time and money while ensuring that your agreement is legally enforceable should problems arise in the future.

If you and your ex-spouse or ex-partner aren’t in regular contact, are in a bitter relationship, or just can’t agree on a solution, it may be time to consult an attorney. Your attorney can suggest preliminary financial arrangements that can be presented to your ex in hopes of reaching an agreement. Sometimes all it takes is a little nudge from an attorney to compel both sides to make an effort to reach a resolution for emerging situations. If successful, the agreement would be summarized and made binding in a legal document.

If all else fails and you and your ex-spouse or ex-partner cannot reach an agreement even with the help of lawyers, it may be necessary to go to court. Despite the COVID-19 pandemic, most courts are trying to operate as “normally” as possible to ensure people continue to have access to the court process when needed. Family courts are equipped to receive filings electronically and schedule court dates via telephone and video conferencing.

Both New Jersey and Pennsylvania have laws that allow a person to apply for a change in their child support or support if that person’s financial circumstances have changed. A loss of income or cash flow due to COVID-19 could be considered a material, involuntary and unanticipated change that would warrant the court evaluating the situation to determine whether an adequate remedy should be provided. Because the COVID-19 situation is unique in its wide-ranging financial impact on families in New Jersey and Pennsylvania, there are few guidelines of precedent to help us understand how the courts might respond to petitions regarding alimony and child support issues . However, the following are some possible outcomes that could arise from such litigation:

1. The court could grant a temporary reduction in a debtor’s alimony and child support payments, with a mandatory reassessment taking place in 1-2 months, at which time the alimony figures could be increased back to their original amounts.
2. The court could keep alimony and child support at the same level but suspend enforcement and collection efforts. Any defaults would continue to accrue as “arrears” and the debtor would have to repay those arrears at a later date. In essence, this would allow the debtor to pay less on its obligations during the financial crisis, while ensuring that the recipient of the support is fully recovered at some point in the future.
3. The court could seek alternative financial resources for both parties and consider each party’s respective access to alternative sources of funds. This could include investigating lines of credit, loans against retirement savings, trust distributions, advances on inheritances, or relief to one or both parties under the federal CARES Act. Although each family’s situation will be unique, it is hoped the courts will explore all options to get people through these trying times.

These are frightening situations that many people in our community are facing right now, and it is completely understandable to be concerned about your family’s financial security while at the same time taking care of your family’s physical and emotional well-being, as well as your own . If you find that your legal rights or obligations as a result of a divorce or dissolution have been adversely affected by COVID-19, you should contact an attorney today. Through diligence, advocacy, and creativity, it is possible to develop a plan that can help you and your family navigate these uncertain times, with an emphasis on positive and fair outcomes.