As Man’s Salary Plummets, Alimony Reduction is Awarded
- July 13, 2016
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William Bischoff sought to reduce his alimony obligation and terminate his obligation to maintain a life insurance policy for the benefit of his ex-wife, Diane Bischoff, or, in the alternative, to reduce the amount of insurance he was required to maintain. The result of the post-judgment motion was that Bischoff’s alimony obligation was reduced based on significantly changed financial circumstances, although the life insurance policy was kept in place in light of the judge’s finding that it was part of equitable distribution, rather than alimony, and that a change in William Bischoff’s circumstances did not justify a modification of equitable distribution decided long ago. However, Diane Bischoff was required to contribute more to the policy’s premium. In 2006, when the parties divorced, William Bischoff was making approximately $900,000 per year and their Property Settlement Agreement called for alimony in the amount of $153,900 on the first $600,000 of his earnings and one-third of the next $650,000. In 2009 a woman with whom William Bischoff had become romantically involved was arrested for insider trading and William Bischoff was later terminated from his employment. In 2012, the parties consented to a post-judgment modification of the alimony obligation to $2,500 per month with Plaintiff’s income imputed at $125,000 annually and Defendant’s at $20,000 annually. When Plaintiff’s income continued to fall, the within motion for reduction in alimony and termination of insurance was filed. In Bischoff v. Bischoff, the N.J. Appellate Division affirmed the decision of the court below on appeal finding no abuse of discretion on the part of the trial judge and lack of merit in Plaintiff’s claims on appeal. In light of recent changes in the way alimony is determined, it is very important that you seek out the advice of an attorney to protect your rights an entitlements. If you think that it may be beneficial for you to petition the court for a post-judgment modification of your alimony obligation based upon a significant reduction in your income or for any other reason it is imperative that you seek out the advice of an experienced attorney before moving forward. For more information about alimony, divorce, post-judgment modification, child support, or other family law matters in New Jersey visit DarlingFirm.com. This blog is for informational purposes and in no way is intended to replace the advice of an attorney.