Spousal Support & Retirement
Retirement changes the financial landscape after a long-term California marriage, but it does not automatically end spousal support. Courts look closely at whether retirement is reasonable and how it affects both spouses before modifying any order. Knowing what judges evaluate helps former spouses plan ahead and avoid surprises.
Spousal Support & Retirement
Retirement changes the financial landscape after a long-term California marriage, but it does not automatically end spousal support. Courts look closely at whether retirement is reasonable and how it affects both spouses before modifying any order. Knowing what judges evaluate helps former spouses plan ahead and avoid surprises.
Before retirement reshapes your finances, make sure your support strategy is built to protect you.
When a long-term marriage ends in California, the lower-earning spouse may be awarded permanent or long-term spousal support that does not have a set end date when the payor’s obligation expires. In determining what is appropriate, the court must consider a range of factors that collectively paint a picture of the recipient’s need for support and the ability of their higher-earning ex-spouse to pay. However, a level of support that may be sustainable when someone is at the peak of their earning power can come to feel like a crippling financial burden years later when they’re contemplating retirement.
The state of California does not expect someone to continue to work beyond a reasonable retirement age to meet previously ordered spousal support. At the same time, retirement does not automatically absolve the payor of their alimony obligations. If retiring will result in a substantial loss in income, the supporting spouse can request a modification or termination of support based on the change in their financial circumstances. Understanding what a court will consider in determining if such a change is appropriate can help both the payor and recipient spouse plan for the potential impact of retirement on spousal support.
How Does Spousal Support in California Affect Retirement?
In California, there is no specific age at which spousal support automatically ends. Instead, a person who reaches retirement age (generally accepted to be 65 years old) can petition the court to reduce or end support payments based on their new, post-retirement income. They should continue paying at the currently ordered level until a modification is granted, as there can be serious penalties for failure to pay, and it should not be assumed that a request will mean that they will no longer need to pay any support.
Even in retirement, the payor will likely continue to have income of some kind. This can include pension income, retirement assets like an individual retirement account (IRA) or 401(k), social security, investment income from a stock portfolio or rental properties, and more. If a modification has been requested based on the payor’s retirement, the court will examine the same kinds of factors used to determine spousal support in the first place, such as:
- The payor’s retirement income from all sources
- The supported party’s income
- Both parties’ assets
- The needs of both parties
- Each party’s age and health
When possibly modifying support based on retirement, the court will also look at whether retirement occurred at the expected age or if the payor elected to retire early. In the case of an elective early retirement, especially if it is perceived to be for the purpose of prematurely ending spousal support, the court may decline to reduce the amount owed. (Note that this does not mean everybody must work until age 65.
A key case in California, In re: Marriage of Shimkus, established that in certain professions, a normal retirement age may be much younger—in that instance, age (55 for firefighters due to the physical demands of the job.) If, on the other hand, an early retirement was not voluntary and attempts to find further employment were unsuccessful, a court may be more likely to decide that reducing or ending alimony is appropriate.
Can a Recipient Spouse Challenge a Modification Request?
If the recipient spouse believes that retirement doesn’t represent a significant change in circumstances that makes the payor unable to continue support, or that the retirement itself was planned to dodge their support obligations, they can challenge the modification. Again, the court’s decision will be based on facts, so they will need to gather evidence to show not just the ongoing need, but also the supporting spouse’s ability to continue paying at previous levels despite the retirement or to continue working. This can be difficult to prove, so working with an experienced family law attorney is strongly advisable.
A spouse who has come to rely on alimony payments and is worried that the payor’s retirement will cut them off should also be aware that the death of either party ends spousal support obligations, unless there is a written agreement that states otherwise. If the payor should die unexpectedly, the supported spouse can make a claim against the estate for any back amounts owing, but future payments will cease. Prudent long-term planning should account for the possibility that spousal support could be reduced or eliminated to guard against unanticipated financial hardship.
Navigating Issues of Spousal Support in Silicon Valley
If you’re confused and worried about what retirement means for spousal support, the family law attorneys at Hoover Krepelka can help safeguard your financial future. We’ve effectively advocated for our clients in Silicon Valley for over 60 years with expertise and compassion. To schedule your consultation, fill out the form below.
Reach Out To Our Expert Attorneys Today
FAQS
Does spousal support automatically end when the paying spouse retires?
No. Spousal support does not automatically end upon retirement. The paying spouse can request a modification or termination of support based on the change in income due to retirement, but support payments must continue at the current level until the court approves any change.
What factors does the court consider when deciding to modify spousal support after retirement?
The court examines the payor’s retirement income from all sources, the supported spouse’s income and needs, both parties’ assets, their age and health, and whether the retirement was at a reasonable age or an early voluntary retirement intended to avoid support obligations.
Can the recipient spouse challenge a request to reduce or end spousal support after retirement?
Yes. The recipient spouse can challenge a modification request if they believe the retirement does not significantly reduce the payor’s ability to continue support or if they suspect retirement was planned to evade spousal support. The court will consider evidence from both sides before making a decision.