Can You Modify a Divorce Settlement Because of Inflation or Rising Living Costs?

Inflation has impacted every part of our daily lives. Houses, food, utilities, and travel expenses have all increased substantially over the past few years. As expenses keep rising, many divorcing people may ask themselves whether they can return to court to modify their settlement agreement regarding finances.

Whether it is possible or not depends on the nature of the obligation itself. Certain aspects of a divorce can be changed under Pennsylvania law, even after the decree is issued.

Child support and spousal support can be modified

Pennsylvania courts understand that financial conditions change. Modifications to child support and certain forms of spousal support can be made if there is a substantial change in circumstances.

Whereas inflation itself is not grounds for a modification of support, the increased cost of living can be one of the factors that affect your financial situation. For instance, if one of the parents experiences a significant increase or decrease in income, becomes unemployed, falls ill, or faces other financial difficulties, child support may be adjusted.

The same applies where there are substantial changes in the receiving parent’s needs or the supporting spouse’s financial situation.

Property division usually cannot be changed

A common misconception is that a person can reopen their case to modify the property settlement due to increased property values or inflation impacting their shares.

The rule in most states is that property settlement agreements and equitable distribution orders are final. The court’s decision regarding property division cannot be changed after the divorce is concluded, even if circumstances have changed.

For instance, when one partner receives the family home, whose value has escalated significantly, the other will not be able to return to court to demand an additional share.

Alimony modifications depend on the order 

Alimony modifications largely depend on how the alimony arrangement was set up and whether a modification is possible.

When there has been a court order on alimony, the modification can take place if either of the parties manages to prove a “substantial” change in circumstances. If the alimony arrangement is subject to a negotiated marital settlement agreement, then modification could be barred under the terms of the agreement itself.

What qualifies as a “substantial change” in circumstances?

The courts typically look for real, lasting changes in finances rather than small increases in routine costs. Examples of these could be:

• A substantial change in income.
• Unemployment or involuntary loss of employment.
• Illness or disability.
• Retirement, where applicable.
• Substantial changes in the financial necessities of a child.

Each case is considered on an individual basis, and the court will look at the entire situation in order to make its decision.

Contact a Philadelphia, PA, Family Lawyer Today

The Law Offices of Lauren H. Kane represent the interests of Philadelphia residents who are going through a divorce. Call our Philadelphia family lawyers today to schedule an appointment, and we can begin preparing your case right away.