On Feb. 12, Rotterdam District Court issued a ruling regarding the effects of the corona crisis on an alimony obligation.
What was at play in this case? At the time of the divorce, the parties had agreed that the husband would pay spousal support of €5,000.00 gross per month. The divorce covenant included a non- modification clause. This means that the alimony cannot be modified in the future on the basis of a change in circumstances, except if the alimony obligor can no longer be held to the clause by standards of reasonableness and fairness. This is almost never assumed in case law.
In this ruling, the Rotterdam District Court indicated that the consequences of the corona crisis can lead to circumstances that make a non-amendment clause inapplicable. The court indicated that it is established that the travel industry, in which the man works, has been hit very hard by the corona crisis. The parties could not have taken into account something as drastic as the corona crisis when concluding the non-modification clause in the divorce agreement. For this reason, the court found it perfectly understandable that the impact on the husband’s businesses in the travel industry, is overwhelming. As a result, the non-modification clause in the divorce covenant can be set aside.
But: according to the court, the man had not sufficiently demonstrated what his income was before the corona crisis and is now during the corona crisis. Therefore, the decline in income could not be determined and the court could not assess whether the corona crisis would be such a drastic change in circumstances that the husband could no longer be held to the non-modification clause by the standards of reasonableness and fairness. In short, the husband had not sufficiently demonstrated that his income had decreased due to corona to reduce spousal support.
It follows from this ruling that under exceptional circumstances such as the corona crisis, the alimony obligation can lapse even under a non-modification clause.
Does this situation apply to you or do you have any questions? The attorneys in the Law of Persons and Family Law Practice Group will be happy to help you and think along with you about possible solutions.
