Navigating Unemployment and Divorce

Going through a divorce can be challenging enough, but it can be even more difficult if you are navigating unemployment and a tumultuous job market.

In New Jersey, the parties are to maintain the financial status quo during a divorce. That is, they should maintain the same economic lifestyle during divorce as they enjoyed during the marriage. However, the practical reality is that the separation of households may also have an inevitable impact on each party’s ability to maintain the marital standard of living. How unemployment affects a person’s specific obligations during a divorce is dependent upon the marital standard of living.

For example, if one party was the primary caretaker for the children and remained out of the workforce during the marriage, that party may not have an obligation to immediately start their job search during a divorce. However, in considering an award of spousal or child support, the Court can consider that party’s education and prior experience in determining whether imputation of income might be appropriate. As a result, it is not necessarily unusual for a stay-at-home parent to consider their re-entry to the job market during or following a divorce.

On the other hand, if the primary wage earner becomes unemployed or underemployed in anticipation of or during a divorce, it does not mean that they can seek an automatic modification of a pendente lite support obligation or upend the financial status quo. On the contrary, they may have an ongoing obligation to search for similar employment and maintain the marital standard of living.

During a divorce, it is vital to keep your attorney apprised of your complete financial situation, including employment or unemployment. Failure to disclose a job loss or a substantial change in financial circumstances can lead to unwanted litigation.

If you are actively searching for employment, you should maintain records of your search, including documentation related to all applications submitted, interviews received, rejected applications, and the terms of any offers of employment. Providing this information to your attorney can help them to negotiate pendente lite and post-judgment spousal support and child support.

Understanding your financial obligations and how to navigate the job market is essential for anyone going through a divorce. If you're navigating unemployment during divorce, consult with a knowledgeable Cohn Lifland family law attorney who can help you understand the impact on your divorce and resolution.