Retirement often means big changes in money matters. Many people stop getting a paycheck and start using savings, pensions, or Social Security. This shift can make it harder to pay spousal maintenance, and may cause a spouse who is paying spousal maintenance to seek to modify those payments. Since every situation is different, judges may consider various factors before making adjustments.
What courts may consider when a request to modify is made
A former spouse may seek a modification of spousal support for many reasons, including retirement. If retirement is the basis for the request to modify maintenance payments, the former spouse will likely need to show that retirement has caused a big change in income to ask for lower payments. Judges will surely want to know how much money the retiree now has, their health, age, and whether they planned for retirement. If they find that retirement makes it much harder to pay, they might lower or stop the payments. However, courts also consider the needs of the receiving spouse and whether they still rely on this financial support.
What about early retirement?
Choosing to retire early can make it harder to modify spousal maintenance. If someone retires before the usual age without a legitimate reason for doing so, thereby reducing their income significantly, the court may not modify payments. Judges will likely look at work history, health, and financial planning to decide if early retirement should constitutes a reasonable basis to modify maintenance payments. If a person chooses early retirement but still has the ability to work, the court may decline to grant a request to change the original order.
How divorce agreements affect payments
Some divorce agreements already include rules about retirement and spousal maintenance. These agreements may dictate when payments can change or stop. If no rules are in place, the paying spouse must ask the court for a change, or modification of the agreement. Working with experienced Indianapolis divorce lawyers in your divorce can help prevent surprise costs later. Spouses who are going through a divorce should consider discussing retirement terms in their agreements to avoid confusion in the future.