New Jersey Child Support Modification Laws in Transition
As unemployment rates and requests for child support modifications continue to rise, New Jersey is moving into a transitory phase to meet the challenge.

March 18, 2010 /24-7PressRelease/ -- New Jersey Child Support Modification Laws in Transition

The limits of New Jersey child support modification laws are being tested by some of the worst economic conditions since the Great Depression. Parents who once had reliable work and steady incomes are finding themselves without a job or taking jobs that offer considerably less pay and reduced benefits, if any at all. As unemployment rates and requests for child support modifications continue to rise, the state's current system of laws is moving into a transitory phase to meet the challenge.

New Jersey Modification Law

New Jersey law requires parents to keep making support payments, even if they have lost their jobs. Those who fail to do so may be put in jail for violating a court order. Those who pay less than they owe will begin to accrue arrears - or back child support - that must be paid to avoid penalties, jail time and other consequences.

The only way to legally reduce the amount of child support payments under state law is to request a modification of the support order from the court. The parent requesting the modification must be able to demonstrate that there has been a substantial change in circumstances that necessitates changing the amount of child support. The court will also evaluate if the change is temporary or permanent.

It is not unreasonable to conclude that losing a job or having your income drastically reduced qualifies as a substantial change in circumstances. However, state law traditionally has viewed job loss as a temporary change in circumstances. As a general rule, New Jersey courts do not grant child support modifications for conditions that are temporary or conditions that are expected to occur in the future, but have not yet happened. For a job loss to be considered a substantial, non-temporary change, the parent generally must be unemployed for at least 12-18 months, although each case is fact sensitive and these parameters may vary based upon the specifics in a particular case.

Imputation of Income

Additionally, the court can impute income to a parent. For example, if the parent recently lost a job where the parent earned $80,000 per year and the Judge believes the payor is not diligently and in good faith pursuing a new job, the court will presume that the parent can find comparable employment making a comparable salary. Based on this presumption, the court will then calculate child support payments using the earning capacity of the parent. If the parent takes a lower paying job, the court may consider this "voluntary underemployment" by the parent. In other words, if the parent takes a job with a lower wage, the court may assume the parent is attempting to undermine the law and skirt their financial responsibility to their children.

The New Economic Reality

In the current economy, New Jersey family courts are discovering that they have to be creative in applying the state's modification laws to the financial circumstances facing many parents. While unemployment in the past may have often been a temporary situation, this is frequently not true anymore. Before the recession, it took most people an average of 1-3 months to find a job. Now, it may take 6 months or longer to find employment, depending on the individual's education, skill level and experience.

Additionally, the likelihood of a person finding similar employment with comparable income is no longer a given. Roughly 9 million workers, or 5.8% of the national workforce, are currently working part-time jobs. These jobs generally offer reduced compensation and little to no benefits, including health insurance.

Thus, between the increased length of time it takes to find a job and the decreased likelihood of finding employment with a comparable wage, a parent's job loss may not realistically reflect a temporary change in circumstances.

To meet the challenges posed by the economy, judges have become more willing to consider a parent's job loss, reduction in hours or lay-off as a substantial change in circumstances necessitating a child support modification. Now, instead of a parent being out of work for 12-18 months, 6 months unemployment may be enough to warrant a lower child support payment.

Contact an Experienced Family Law Attorney

Even though New Jersey courts have been responsive to adapting the state's laws to consider the economy's impact on a parent's financial situation, this does not mean the court will grant every modification request. The court still will consider other factors before granting a modification, including whether the parent has any other sources of income, such as personal savings or retirement savings. Parents may be required to exhaust these accounts before a modification will be ordered.

Parents who have fallen on tough economic times and need to change their child support payments should not try to handle the modification request on their own. Since the law in this area is in a transitory phase, it is important to have experienced legal advice. An attorney with experience handling support modifications can act as the parent's advocate and help the parent make the strongest case possible for the modification.

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