Can alimony payments be reduced if business is slow?
If the right circumstances exist, an alimony obligation can be modified. If something happens and your tech startup is slowly hemorrhaging money, or the bakery you opened is no longer profitable, there is a chance that your alimony obligation could be lowered. In order to have the option to modify alimony, some requirements must be met.
First, alimony must be set forth in a court order in order to be modified. If you agreed to a spousal support amount in a separation agreement, it may not later be altered. If the profitability of your business has the potential to fluctuate, you may want to consider obtaining an order on alimony rather than including in a separation agreement so that in the event that the business becomes less profitable, you still have the option to modify it.
If your alimony award is court ordered, a substantial change in circumstances since the original order was entered can allow the court to modify or vacate the order. You will have to provide evidence showing that the facts have changed since the original order enough to warrant a substantial change in circumstances. Make sure your original order sets forth enough findings of facts about the parties’ financial condition so that you can compare your new circumstances with the previous order, and show a substantial change in circumstances.