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Importance Of Lifestyle Analysis In Divorce Cases

By William M. Laufer, Esq. and Joseph P. Cadicina, Esq.

Since the New Jersey Supreme Court's decision in Crews v. Crews, 164 N.J. 11 (2000), the Courts throughout the State of New Jersey have been required to conduct a Lifestyle Analysis prior to entering a Final Judgment of Divorce. The Trial Court must be satisfied that both parties can maintain a lifestyle which is reasonably comparable to the standard enjoyed during the marriage. The Courts in various counties have required that the attorneys establish the lifestyle at trial and/or an uncontested divorce hearing. In some counties, there are standard forms which must be completed either individually or jointly by the respective attorneys and submitted to the Court as evidence at the uncontested hearing. In other counties, the Court requires the parties to testify as to the standard of living they enjoyed during the marriage. An example of some of the categories that illustrate lifestyle are: (1) if the parties owned and/or rented their residences during the marriage; (2) the type and value of home and/or apartment that the parties resided in during their marriage; (3) the make/model of vehicles the parties owned and/or leased during the marriage; (4) the number of times that the parties ate dinner at restaurants and what type of restaurants; (5) the type of stores the parties shopped in for clothing and accessories; and (6) the types and costs of vacations that the parties took throughout their marriage.

These types of questions are asked by the parties' attorneys and the Court to establish the lifestyle enjoyed during the marriage and for the Court to determine whether the parties will be able to continue to live the same or a reasonably similar lifestyle after the divorce. Many Courts often ask the question as to whether the parties believe that they will continue to enjoy the same or similar lifestyle they enjoyed during the marriage taking into consideration all of the facts and circumstances surrounding the parties' settlement. In the event that a party does not believe that he or she can continue to live the same or similar lifestyle enjoyed during the marriage, the Court will need to explore why a party feels that he or she will not live the same or similar lifestyle. The Court may even refuse to proceed with an uncontested divorce if a party advises the Court that he or she will not be able to live the same or similar lifestyle enjoyed during the marriage regardless of the fact that the parties have entered into a Property Settlement Agreement.

Although the Lifestyle Analysis has become extremely important, it is not the only factor that the Court must consider in analyzing alimony cases. There are basically three types of alimony:

1. Permanent Alimony;

2. Rehabilitative Alimony; and

3. Limited Duration Alimony.

There are 13 factors under N.J.S.A. 2A:34-23(b) to be considered in determining alimony, which are as follows:

1. The actual need and ability of the parties to pay;

2. The duration of the marriage;

3. The age and physical and emotional health of the parties;

4. The standard of living established in the marriage and the likelihood that each party can maintain a reasonably comparable standard of living;

5. The earning capacities, educational levels, vocational skills, and employability of the parties;

6. The length of absence from the job market of the party seeking maintenance;

7. The parental responsibilities for the children;

8. The time and expense necessary to acquire sufficient education or training to enable the party seeking maintenance to find appropriate employment, the availability of the training and employment, and the opportunity for future acquisitions of capital assets and income;

9. The history of the financial or non-financial contributions to the marriage by each party, including contributions to day care and education of the children and interruption of personal careers or education opportunities;

10. The equitable distribution of property ordered and any payout of equitable distribution, directly or indirectly, out of current income, to the extent this consideration is reasonable, just, and fair;

11. The income available to each party through investments of any assets held by that party;

12. The tax treatment and consequences to both parties of any alimony award, including the designation of all or a portion of the payment as a non-taxable payment; and

13. Any other factors which the Court may deem relevant.

Although the Court has emphasized the marital lifestyle enjoyed during the marriage in its decision in Crews v. Crews, the factors set forth in N.J.S.A. 2A:34-23(b) must also be weighed in determining the type of alimony and the amount of alimony. The Trial Courts are careful to establish a standard that will serve as the basis and guidelines in evaluating changes of circumstances in the future when one party files a post-judgment application to increase, continue, and/or terminate alimony. Thus, it is extremely important for both the attorneys and the Court to establish the parties' standard of living enjoyed during the marriage at trial and/or an uncontested divorce.