If your business has taken a hit because of tariffs or market volatility, the law may offer a path to modify your spousal support obligations—but it’s not automatic.
A client runs a successful U.S.-based fashion brand that relies entirely on a specialized garment factory in Asia. When the most recent round of tariffs hit, the cost of importing the entire product line surged overnight. Combined with a dip in consumer demand, he’s had to cut staff, delay production, and suspend new orders. Meanwhile, his court-ordered spousal support obligation remains based on pre-tariff earnings.
Legal Analysis: Modifying Spousal Support Due to Financial Hardship
The Legal Standard for Modification
Under Washington law, spousal support—called “spousal maintenance”—can be modified upon a showing of a substantial change in circumstances (RCW 26.09.170). A temporary dip in income won’t be enough. Courts look for sustained and material changes that were not contemplated at the time of the original order. A business setback due to tariffs or market volatility may meet that standard, but only with strong documentation.
Business Owners Face Unique Challenges
Business owners, unlike W-2 employees, often have inconsistent income. Yet courts typically look at averaged or historical income patterns when setting support. A sudden drop in revenue due to global tariffs or supply chain issues may appear temporary on the surface—but if this drop lasts for multiple quarters or results in structural changes (downsizing, pivoting operations), judicial review may be warranted.
Supporting Evidence Matters
In order to consider a modification, Courts will expect detailed, objective evidence of the hardship. This includes updated profit-and-loss statements, tax records, supplier invoices showing tariff increases, and proof of declining sales. The client’s reasonable efforts to mitigate loss—such as seeking new suppliers or reducing costs—will also factor into the court’s decision. Unilateral decisions to stop paying support are rarely viewed favorably.
Economic Conditions May Support the Case
Even public officials are acknowledging the volatility. As U.S. Trade Representative Katherine Tai said recently, “The tariff environment is in flux, and it’s clear that businesses are struggling to plan ahead.” Similarly, former Treasury Secretary Janet Yellen commented that “supply disruptions and global headwinds are contributing to economic uncertainty for U.S. businesses.” Federal Reserve Chairman Jerome Powell echoed a similar warning, “While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.” These acknowledgments support the view that today’s business losses aren’t isolated or speculative—they’re part of a broader shift.
Practical Considerations for Filing
If you’re considering petitioning to modify support, timing and preparation are everything. Courts tend to be cautious, especially where there is a perception of a self-inflicted hardship. A well-documented petition, backed by credible financial data and expert testimony (if needed), improves your odds. Also, propose a reasonable interim order—courts may grant temporary relief while the modification is pending, and the circumstances are exigent. Otherwise, it is a four-month wait, at least in King County, for a trial by affidavit to be heard by the Court. At the trial by affidavit, it’s not just about asking to pay less—it’s about proving the numbers, showing good faith, and offering a reasonable reduction and path forward.
