Mercedes USA is moving from New Jersey to Georgia (nytimes). I’m wondering if this means some of the 1,000 employees affected by the move will sue or be sued for divorce. A plaintiff might find it far more profitable to sue for divorce under New Jersey law than under Georgia law and might prefer the sole custody arrangements that are more typical in New Jersey compared to Atlanta. Here are some of the differences:
- child support in New Jersey can be collected until a child turns 22 (until “emancipation” which our interviewee said was “usually just a four-year college education”); in Georgia child support is cut off at age 18
- a judge in New Jersey can order the defendant to pay for college; a judge in Georgia does not have that power
- child support in New Jersey is governed by guidelines up to $187,200 per year of a defendant’s after-tax income [resulting in a cash flow of $29,692 per year for a single child; compare to about $50,000 per year in Massachusetts or $55,250 per year in Manhattan] and above that is limited only by a judge’s generosity; child support in Georgia is capped at $26,832 per year (tax-free), based on $360,000 per year in parental income
- our interviewees estimated that, for a given length of marriage, alimony was likely to last longer in New Jersey compared to Georgia, though in both cases might be roughly one third the difference in pre-tax income
- a custody lawsuit in New Jersey is likely to end with the mother obtaining sole custody of any children (every-other-weekend visitation with the father); a custody lawsuit in Metro Atlanta is likely to end, especially if both parents work, with a 50/50 parenting time schedule (though our interviewee said that rural Georgia was more traditional and therefore more like New Jersey)
- a plaintiff in New Jersey with a lower income than the defendant can get the defendant ordered to pay the legal fees on both sides of the case (our interviewee estimated a minimum of $300,000 in total fees, including psychologist expert witnesses, for a custody lawsuit); in Georgia generally each litigant has to pay for his or her own lawyer
This seems like an interesting sociology research project. At a minimum these seem like good questions:
- do employees and spouses research these differences in law prior to the move?
- are lawsuits more prevalent shortly before a move or immediately after?
- (to make sure that the answer to 2 is about the differences in law instead of the move) to what extent is there an increased number of lawsuits around the time of a corporate move when divorce laws are nearly the same in the two jurisdictions?
[Separately, why would Mercedes want to move? Tax Foundation says New Jersey has the 49th worst business environment in the nation. To run state and local government the state collects 12.27 percent of residents’ income, the second highest percentage in the U.S. (after New York). Georgia, on the other hand, manages to run state and local government with 8.84 percent of residents’ income, slightly below the national average, though its business environment ranks #32 out of 50. And the New York Times article shows the benefits of being a big rich company in the U.S., with both New Jersey and Georgia offering Mercedes-Benz massive hand-outs that an employer of 10 workers could not obtain, even scaled proportionately.]
The small sample of New Jersey divorced fathers I know hated their lives. New Jersey is strange in the way that it is pretty much assembled from parts of the NYC and Philly metro areas. You can decide to live in another state, under another set of laws, and still have the same commute time to the same job.
People know this, and use it to take advantage of lower personal income taxes and maybe lower property/ rental costs (which are to a large extent driven by property and other taxes). But I wonder if they research the other differences that come from living in a different state jurisdiction. Often in relatively lower tax states -though taxes in NJ have risen considerably over the years- they will bite you in other areas.
Interesting story about a guy that left Canada to the Philipines to avoid child and spousal support. The guy wrote his last email to his ex-wife:
“The result of the legal instrument which you recently designed and implemented
is that there is no possibility of a comfortable life or a (secure) retirement for me in Canada at all. Therefore, I have left the country to seek greener pastures elsewhere and will never return. Well done Einstein. Good luck and good bye.”
https://lawdiva.wordpress.com/2012/12/17/ill-just-leave-the-country-and-pay-nothing/
A long time ago the division I worked in decided to move it’s NJ based R&D down to the factory in Texas. People were told “you have your job but it’s in Texas”. They only expected a fraction of the people to move (downsizing without layoffs). I personally knew many of the 400 or so people in the division. I never heard of anyone divorcing before deciding to go, but sadly there were many divorces (and at least one suicide) soon after the 100 or so employees made the move.