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A Case Study

The pre-trial conference has concluded, and a trial date has been scheduled in six weeks. The expense of drafting trial briefs, pre-marking exhibits and preparing witnesses appears unavoidable. Mediation has been unsuccessful in accomplishing your client's primary goal: a buyout of spousal support, in whole or in part, in order to avoid the inevitable motion practice when she attains the full retirement age of 67. As you have advised your client, the judge at trial does not have the authority to order lump sum spousal support or any hybrid or creative approach to spousal support termination that doesn't comply with the alimony statute.

The facts of the case are straightforward: Wife earns $350,000, gross, and has worked in finance for 25 years, her entire career. She is 59 years old and has been married to Husband for 25 years. Both of their children are emancipated. Recently, Wife received an offer to teach in the MBA program at a university—a career change she has long considered. Wife would earn $150,000 as a professor, far less than she is earning now. She understands that a voluntary career change would not relieve her from the obligation of paying spousal support based upon her marital salary. Wife would like to retire at age 67 and has plans to remarry. You have counseled Wife about the risks of paying lump sum spousal support, including but not limited to Husband's remarriage terminating her obligation. She is aware that she may be jeopardizing her financial future in order to structure the buyout and does not want to "pay out" all of the marital assets to Husband. Regardless, Wife is anxious to negotiate a creative way to attain her goals, so that she is working for herself, and not to pay spousal support. 

Husband is a tenured high school teacher, earning $85,000, gross, per year. He is also 59 years old. Husband is a participant in a Teachers' Pension and Annuity Fund and will be eligible for retirement at age 62. Unless he remarries, Husband will be eligible to collect one-half of Wife's social security benefit or his own, but not both. He plans to buy a home in the school district where he teaches.