You lost your job . . . Now what?
If you read the newspaper or watch television, you are confronted almost daily with reports that the U.S. economy continues to slide further and further into recession. Last week, the National Bureau of Economic Research released figures showing that the U.S. economy had actually been in recession since December 2007. On Friday, the Bureau of Labor Statistics reported that the unemployment rate in November rose from 6.5% to 6.7%, a fifteen year high. When you factor in the rate of underemployment – a measure some economists believe to be more accurate than traditional unemployment rates because it includes workers who are unable to find full-time employment – the numbers jump to 12.5%.
If you’ve recently lost your job, you certainly don’t need me to tell you how tough times are. But, you do need to know about how the law with regard to changing your child support or spousal maintenance payments.
Contrary to popular belief, the fact that you lost your job doesn’t automatically change or suspend your child support or spousal maintenance payments. You can’t just stop making the monthly payments because you don’t earn the same amount of money that you used to. In fact, the law works in precisely the opposite way. You are required to continue making the same payments, on the same dates, and in the same way that you used to until you get an Order changing the amount.
Minnesota Statutes Section 518A.39 subdivision 2(e) states that a motion to modify child support or spousal maintenance may be made retroactive – that is relating back to some earlier date in time – only back to the date that the motion was served on the opposing party. In other words, you can only request that the Court change your monthly payment amount back to the date that you served your motion on the other party. The Court doesn’t have the power to change it to an earlier date, no matter how unfair it may seem.
To illustrate this point, consider the following example: Suppose Tom got divorced from Mary in 2006. At the time, he was a dentist earning $150,000 per year. The Court ordered him to pay child support and spousal maintenance to Mary of $5,000 per month. In January 2008, his dental practice went bankrupt. He stopped paying Mary, because he didn’t have any money. In July 2008, he found a new job working as a dentist. Unfortunately, he only earns $5,000 per month. In August 2008, he files a motion with the Court to modify his child support and spousal maintenance payments.
While Tom may be successful in convincing the Court to change his monthly payment obligation going forward from August 2008, he will still owe Mary approximately $35,000. This is because he was required to pay the full amount until he served his motion in August 2008. He should have filed his motion sooner.
The lesson here is to file your motion as soon as you lose your job. Don’t wait until you get back on your feet. You can always dismiss your motion if you get a new job before the Court date.
If you’ve recently lost your job, you certainly don’t need me to tell you how tough times are. But, you do need to know about how the law with regard to changing your child support or spousal maintenance payments.
Contrary to popular belief, the fact that you lost your job doesn’t automatically change or suspend your child support or spousal maintenance payments. You can’t just stop making the monthly payments because you don’t earn the same amount of money that you used to. In fact, the law works in precisely the opposite way. You are required to continue making the same payments, on the same dates, and in the same way that you used to until you get an Order changing the amount.
Minnesota Statutes Section 518A.39 subdivision 2(e) states that a motion to modify child support or spousal maintenance may be made retroactive – that is relating back to some earlier date in time – only back to the date that the motion was served on the opposing party. In other words, you can only request that the Court change your monthly payment amount back to the date that you served your motion on the other party. The Court doesn’t have the power to change it to an earlier date, no matter how unfair it may seem.
To illustrate this point, consider the following example: Suppose Tom got divorced from Mary in 2006. At the time, he was a dentist earning $150,000 per year. The Court ordered him to pay child support and spousal maintenance to Mary of $5,000 per month. In January 2008, his dental practice went bankrupt. He stopped paying Mary, because he didn’t have any money. In July 2008, he found a new job working as a dentist. Unfortunately, he only earns $5,000 per month. In August 2008, he files a motion with the Court to modify his child support and spousal maintenance payments.
While Tom may be successful in convincing the Court to change his monthly payment obligation going forward from August 2008, he will still owe Mary approximately $35,000. This is because he was required to pay the full amount until he served his motion in August 2008. He should have filed his motion sooner.
The lesson here is to file your motion as soon as you lose your job. Don’t wait until you get back on your feet. You can always dismiss your motion if you get a new job before the Court date.
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