Does Retirement Affect Spousal Maintenance?
Retirement can bring major life changes, including a slower pace of life and the opportunity to finally relax a bit. Once retirement occurs, financial adjustments may also need to be made. If the retiring individual is either paying or receiving spousal maintenance, will this change the amount of the payments – or end them entirely? For the paying spouse, does retirement mean the spousal support can be reduced? If so, is it automatic? These are all important questions. To get the best answers for your unique situation, speak to an experienced Aurora, IL family law attorney.
What Does Your Divorce Agreement Say?
What was the award of spousal maintenance based on, and what was the length of the maintenance under the statutes? A judge can deviate from Illinois statute, but generally does not. So, the duration of spousal support is based on the length of the marriage in years, multiplied by the associated percentage to determine how long the spousal support will be paid. For example, for a marriage of less than five years, the percentage multiplier is 20 percent.
If the marriage lasted five years, the length of spousal support would be a year. The percentage multiplier for a 10 to 11-year marriage is 44 percent, meaning spousal support in a ten-year marriage would last four years and four months. The multiplier for a 19 to 20-year marriage is 80 percent, so spousal support would last for approximately 16 years.
A marriage of 20 years or more could result in spousal support that lasts 20 years – or indefinitely. In most cases, only marriages of a significant duration would have to deal with the question of retirement, but not always. The next question would be whether the divorce agreement addressed the question of retirement.
Except for those who are financially well-off, retirement usually results in a lower income, as the retired person must live on a lower, fixed income. If the duration of the spousal support was fairly long, the judge might have anticipated that the paying spouse would retire and could have ordered the payments to stop upon his or her retirement. If not, orders for spousal support do not automatically adjust upon retirement.
Can the Paying Spouse Request a Reduction in Spousal Support Once Retired?
Under Illinois law, spousal support can be modified any time there is a substantial change in circumstances. This could be a change in circumstances for either spouse, but in this situation, it is likely to be the retired paying spouse. To request a reduction in spousal support, the retired, paying spouse must clearly show his or her change in circumstances.
This could include providing evidence of retirement and how retirement has adversely affected your financial situation. If you have also had increased medical expenses, you can also offer these expenses as evidence that your situation has significantly changed.
Your attorney will file a petition with the court on your behalf to modify your spousal support based on your changed circumstances. If the petition is successful, you will submit a formal request to the court to modify your spousal maintenance order. This will ensure that the changes are legal and enforceable.
Be aware that your petition requires that you show "good faith" in your request. What this means in this situation is that you must demonstrate that your retirement aligns with industry norms or the usual age. This will tell the judge that your decision to retire was not made in an attempt to avoid your spousal maintenance.
Factors the Court Will Consider
When considering your petition to modify spousal support, the judge will consider the financial resources of both parties, your ability to meet your own needs while continuing to provide spousal support, the original order (the length of the marriage and purpose of the support), and whether the receiving spouse can meet his or her basic needs without spousal support.
Contact a Kane County, IL Spousal Support Attorney
If you are facing a situation like this, speaking to a Batavia, IL spousal support lawyer from The Law Office of Matthew M. Williams, P.C. is your best course of action. Attorney Williams focuses on mediation and collaborative divorce to help make the divorce process more amicable and easier. Call 630-409-8184 to schedule an initial meeting with a highly qualified attorney.