In the realm of family law, Sheridan v. Sheridan stands out as a pivotal New Jersey case that has shaped the landscape of alimony and support obligations. Decided in 2011, this case involved the ex-wife’s appeal for increased alimony payments from her former husband, highlighting important legal principles regarding the modification of spousal support. Most importantly, however, it raises the possibility that federal and state income tax issues may be reported by the Family Court Judge if improprieties are found.
The case made its way through the New Jersey courts after the ex-wife requested an increase in the alimony awarded to her after a 20-year marriage. Ultimately, the case landed in the Supreme Court. The court’s decision emphasized the importance of considering both parties’ financial situations, including the payor’s ability to pay and the recipient’s need for support. The ruling also reaffirmed that while a change in circumstances can warrant a modification of alimony, it must be substantiated by clear evidence.
However, the most frequently cited takeaway from Sheridan v. Sheridan is the court’s insistence on a thorough examination of each party’s financial status, including tax returns. It required that if a court finds that there has been improprieties in the way that income has been reported, or failed to be reported, on individual or joint federal and state income tax returns, the court has an obligation to report those improprieties to the state and federal governments. In other words, the court is obligated to inform the IRS or Division of Taxation if it believes you have unreported income.
This may be a reason to keep away from trials and submit cases to private mediators or arbitrators if there are concerns about how tax returns may be interpreted. For anyone navigating the difficult waters of divorce in New Jersey, understanding the implications of Sheridan v. Sheridan can provide valuable insights into how courts may approach alimony disputes in the future.
Drew Molotsky is a partner with the law firm of Adinolfi, Roberto & Burick, PA in Mount Laurel, New Jersey. Mr. Molotsky has over three decades of experience representing clients throughout New Jersey facing a wide variety of family law issues. As a Certified Matrimonial Lawyer in Matrimonial Law, Mr. Molotsky has the expertise to deal with your unique family law issue. Contact our Mount Laurel offices today, to schedule an initial consultation.
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