Income Reduced? Why the 90-Day Rule Matters
In today’s unpredictable economy, post-judgment applications for the modification of support based on income reduction are appearing more frequently in New Jersey family law cases. Job losses, corporate downsizing, and business slowdowns can quickly impact a person’s ability to meet support obligations. When that happens, individuals often seek to modify alimony or child support. However, New Jersey law imposes a 90-day waiting period that can significantly affect how and when a modification request is filed.
Understanding the 90-Day Rule
Under N.J.S.A. 2A:34-23(k), anyone seeking to reduce support due to job loss or income decline must wait 90 days before filing a motion with the court. During that time, the person must demonstrate that the income reduction is substantial, involuntary, and ongoing. When the motion is eventually filed, the court will evaluate the payor’s efforts to find comparable employment, overall financial status, and other relevant factors. In some situations, the court may even make a modification retroactive to the date of job loss if the evidence supports it.
For self-employed individuals, the law adds another layer of scrutiny. They must show how business-related benefits — such as company vehicles, cell phones, or other perks — have changed since the reduction in income.
Making the Most of the Waiting Period
The 90-day window is not idle time. It is a critical period for preparation and documentation. Those seeking a reduction should gather proof of job loss, prior tax returns, and pay records while actively pursuing new employment opportunities. Keeping a detailed log of job searches helps demonstrate good faith and effort.
Recipients of support should also use this time wisely, by requesting updated financial records, monitoring claimed losses, and engaging in open discussions about possible adjustments. Mediation during this period can often help both sides reach a fair, cost-effective resolution.
A Period for Fairness and Transparency
The 90-day waiting period promotes fairness and encourages both parties to verify the legitimacy of financial changes before turning to the court system. Whether you are seeking or opposing a modification, preparation and transparency are key to achieving a fair outcome.
If your financial circumstances have changed and you are considering a post-judgment motion based on a reduction in your income or job loss, the family law attorneys at Cohn Lifland Pearlman Herrmann & Knopf LLP can help you understand your rights and options.