5 Signs It’s Time to Modify Your Spousal Support Agreement

5 Signs It’s Time to Modify Your Spousal Support Agreement Before the New Year

Spousal support, also known as alimony, is a financial arrangement established during a divorce or separation that helps one spouse maintain financial stability after the end of the marriage. Typically, the spouse with a higher income is required to provide support to the other spouse for a set period. However, life circumstances are rarely static. Over time, changes in personal or financial situations can make the original terms of your spousal support agreement outdated or unfair. If you’re experiencing significant shifts in your life, it might be time to consider modifying your spousal support agreement before the New Year arrives.

1. Life Changes or Significant Financial Changes

Job Loss or Major Income Reduction

One of the most common reasons for seeking a modification of spousal support is a job loss or a significant reduction in income. If you lose your job or experience a major decrease in your earnings, it may become increasingly difficult to meet the obligations set in your original spousal support agreement. This can create significant financial stress and may necessitate a change in the support terms.

For instance, a job layoff, salary cut, or business closure can drastically alter your financial circumstances. If you’re unable to earn enough to cover your living expenses and spousal support, the court may consider adjusting the amount of support you’re required to pay. In some cases, the paying spouse may need to prove their inability to meet the original terms due to the job loss or income change, and a temporary reduction or suspension of payments may be ordered.

Increase in Income or New Employment

On the other side of the coin, a significant increase in income or new employment may also justify a modification of the spousal support agreement. If the paying spouse experiences a substantial salary increase, a promotion, or secures new employment with better pay, the recipient spouse may be entitled to an increase in support.

An example of this would be if a spouse who was previously underemployed or had a modest income gets a well-paying job after the divorce. If the initial spousal support order was based on the paying spouse's prior lower income, it may be appropriate for the recipient to seek an adjustment that reflects the new financial situation. On the flip side, if the recipient spouse is in a better financial position due to a new job or significant income boost, they may also be able to request a reduction in spousal support.

2. Change in Living Situation

Relocation or Change in Residence

Another key factor that may justify modifying a spousal support agreement is a relocation or significant change in residence. If one spouse moves to a new city, state, or area with a higher cost of living, this can place an unexpected burden on the financial situation. Relocating to a more expensive area may increase both parties' financial needs, prompting a reevaluation of the support terms.

For example, moving to an area with a higher cost of housing, utilities, and general expenses may require the spouse receiving support to ask for more financial assistance. Similarly, if the paying spouse relocates to a more affordable area and can demonstrate that their living expenses have decreased, they might request a modification to reduce their spousal support obligations.

Conversely, if the move involves downsizing to a less expensive home, the paying spouse may be able to argue that their financial situation has improved and that a reduction in spousal support is warranted.

New Dependents or Marital Status

Changes in marital status or the introduction of new dependents can also have a significant impact on the need for spousal support. If the recipient spouse remarries, this can reduce or eliminate the need for continued spousal support, especially if their new spouse is financially supportive. A remarriage or entering into a domestic partnership may signal that the recipient is no longer in financial need of the same level of support.

Additionally, if either spouse has new dependents—whether through remarriage, children from a new relationship, or other factors—the financial obligations of each spouse may change. For instance, a paying spouse who now has additional children or financial responsibilities to a new partner may seek a reduction in support. Similarly, the recipient spouse who now has children or other dependents may argue that their financial needs have increased, which may justify a modification of the support amount.

3. Health Issues or Disability

Health Problems Impacting Earning Capacity

Chronic illness, disability, or serious health conditions can have a profound impact on a person's ability to work and earn an income. If the paying spouse experiences a long-term illness or disability that reduces their earning capacity, it may be necessary to revisit the terms of the spousal support agreement.

For example, if the paying spouse is diagnosed with a serious illness, suffers an injury that prevents them from working full-time, or experiences a disability that limits their ability to earn an income, this can create a financial hardship that warrants a modification in the spousal support obligation. In such cases, the paying spouse may need to request a reduction or suspension of payments while they recover or adjust to their new financial situation.

Additionally, the paying spouse may need to provide medical documentation or evidence to support their claim of reduced earning capacity. Courts typically recognize that if someone’s health prevents them from earning as they once did, their ability to meet financial obligations may change, and they may be entitled to some relief through a modified support agreement.

Change in the Recipient’s Health

On the other side of the equation, the health of the recipient spouse can also impact their financial needs or ability to support themselves. If the recipient spouse’s health improves, they may be more able to support themselves financially, which could justify a reduction in spousal support. For instance, if the recipient spouse recovers from an illness or injury that previously limited their ability to work, they may no longer need the same level of financial assistance.

However, if the recipient spouse’s health worsens, leading to increased medical expenses or an inability to work, their need for support may increase, potentially justifying a request for higher spousal support. Changes in health status—whether positive or negative—should be communicated and reviewed to ensure that the support arrangement remains fair and aligned with both parties’ needs.

4. Compliance Issues or Inability to Make Payments

Failure to Meet Support Payments

One of the most common signs that a spousal support agreement needs to be modified is failure to meet the established support payments. If the paying spouse consistently finds themselves unable to make the agreed-upon payments due to financial hardship or changes in their income, it may be an indication that the support amount is no longer realistic for their situation.

In cases of financial distress, where the paying spouse cannot meet their obligations despite their best efforts, modification of the support agreement may be necessary. This could involve a temporary reduction in support payments, a restructuring of payment terms, or even a complete reassessment of the support amount. Courts will consider the paying spouse's financial ability to comply with the support terms and may grant relief based on their current circumstances.

Unforeseen Expenses

Unforeseen expenses, such as medical bills, emergency home repairs, or other unexpected costs, can place a strain on the paying spouse’s finances and make it difficult for them to maintain the spousal support obligations. These types of expenses may be unpredictable, but they can dramatically affect a person’s ability to keep up with regular payments.

For example, if the paying spouse suddenly faces a large medical expense due to an emergency surgery or treatment, they may struggle to meet their support payments without financial relief. Similarly, urgent repairs or unexpected personal crises could impact the paying spouse’s available income, leading to the need for a temporary reduction in spousal support.

In these situations, it’s important to document these unforeseen expenses and present them to the court as evidence that the support terms need to be adjusted. A modification can help ensure that the paying spouse is not unfairly burdened by both existing obligations and new, unforeseen financial strains.

5. A Change in the Agreement’s Terms is in the Best Interest of Both Parties

Mutual Agreement to Modify Support

In some cases, both spouses may come to the conclusion that a modification of the spousal support agreement is in their mutual best interest. This can happen when both parties recognize that their circumstances have changed, and they agree that the current support arrangement is no longer fair or practical. A mutual agreement can streamline the process of modification, as both parties may be able to avoid a lengthy court battle.

For instance, both spouses might agree that a reduction or termination of support is appropriate due to a significant change in either spouse’s financial situation, such as a remarriage, a substantial increase in the paying spouse’s income, or the recipient spouse’s improved financial independence. In such cases, both parties may work together to agree on new terms that reflect their updated circumstances.

Alternatively, if the paying spouse can no longer afford the current support payments due to unforeseen financial difficulties, and the recipient spouse is able to support themselves more fully, both parties may agree to adjust the terms without needing a contested legal proceeding.

Why You Should Act Before the New Year

If any of the signs above resonate with you, or if you're uncertain about whether a modification to your spousal support agreement is necessary, we encourage you to take action now and reach out to our team at The Goodman Law Firm for expert guidance.

Our experienced family law attorneys will help you understand your options, navigate the legal process, and advocate for your best interests. Don't wait for complications to arise—acting now can help ensure that your agreement supports you and your family in the future.

Schedule a consultation with us today:

• Phone: (704) 502-6773
• Visit our office: 10020 Monroe Road, Suite 170-288, Matthews, NC 28105
• Or schedule a consultation online at The Goodman Law Firm

Let us help you start the new year on the right foot, with a spousal support agreement that meets your needs and circumstances.