Does Cohabitation End or Suspend Alimony?

NJ has a long-standing policy of terminating alimony when the recipient spouse remarries.  But what happens when a recipient does not remarry but cohabits with another person in a romantic relationship?  And what happens if that cohabitation relationship ends?  The NJ Supreme Court recently addressed such a scenario in Quinn v. Quinn (A-5-14).

Cathleen and David Quinn married in 1983 and divorced in 2006.  At the time of divorce, the Husband was earning around $209,000 and the Wife $21,500.  As part of the divorce, they voluntarily entered into a Property Settlement Agreement (PSA) that provided for $2643 in alimony bi-weekly (with an automatic annual inflation escalator) to the Wife.  The PSA stated that alimony would terminate upon “the Wife’s death, the Husband’s death, the Wife’s remarriage, or the Wife’s cohabitation, per case or statutory law, whichever shall first occur.”

In March 2010, the Husband filed a motion to terminate alimony since the Wife was cohabitating with another man from January 2008 to April 2010.  The trial court determined that a cohabitation relationship existed and suspended — but not terminated — the alimony during the time period of cohabitation.  The court also awarded the Husband his legal fees and costs of $145,000.  The suspended alimony and costs were offset against future alimony payments.  The Husband appealed.

In a split decision, the NJ Supreme Court upheld the PSA and ordered termination of alimony rather than a suspension as the trial court ordered.  The court found:

Konzelman is a case that better defines cohabitation (citations removed):

A mere romantic, casual or social relationship is not sufficient to justify the enforcement of a settlement agreement provision terminating alimony. Such an agreement must be predicated on a relationship of cohabitation that can be shown to have stability, permanency and mutual interdependence. The Appellate Division expressed that standard by defining cohabitation as a domestic relationship whereby two unmarried adults live as husband and wife. Cohabitation is not defined or measured solely or even essentially by “sex” or even by gender, as implied by the dissent. The ordinary understanding of cohabitation is based on those factors that make the relationship close and enduring and requires more than a common residence, although that is an important factor. Cohabitation involves an intimate relationship in which the couple has undertaken duties and privileges that are commonly associated with  marriage. These can include, but are not limited to, living together, intertwined finances such as joint bank accounts, sharing living expenses and household chores, and recognition of the relationship in the couple’s social and family circle.

What are the takeaways here?

More than 95% of divorces result from a settlement between the parties.  If you want to get to a settlement less expensively and more quickly, consider mediation.  If you have questions about mediation, please contact me.

Categories Divorce Mediation and Law
Tags alimonycohabitation
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