Archive: August 2020

On July 29, Florida Gov. Ron DeSantis issued Executive Order 20-180, extending the moratorium on evictions and foreclosures in Florida until September 1 due to the coronavirus pandemic. Failing to do so could have left thousands of Floridians homeless, as, unfortunately, many expect a deluge of foreclosures and evictions once the moratorium is lifted. In fact, according to reports, a number of landlords have already filed paperwork to evict their tenants once that the ban is lifted.

Similarly to the original Executive Order (20-94), relief in these circumstances is limited to residential tenants and single-family mortgagors adversely affected by COVID-19, and does not cover commercial tenants. Still, state politicians called on DeSantis to put in place additional plans to ensure long-term housing security – both during and after the pandemic – for mortgagors and residential tenants, as they claim that the governor has ignored important proposals necessary to assemble a more sustainable plan for Florida.

As family law attorneys who practice here in Florida, one of the important areas that we counsel clients on is how to walk away from your divorce while ensuring that you are financially protected. This is, in many circumstances, easier said than done, as, of course, it is difficult to plan for every little financial detail when you are first preparing for divorce. Yet, by hiring a good, experienced attorney who you are comfortable with, and who also has experience and contacts in other areas of law, such as business law, you set yourself up to be better prepared to ensure that you come out of your divorce financially protected.

Below, we discuss one of the common misunderstandings people have when it comes to financial obligations after divorce, as well as several steps that you should take right away when you are getting a divorce in order to protect your financial interests:

First and foremost, regardless of whether one’s divorce decree indicates that they are not liable for their former spouse’s tax bill, if you filed a joint federal income tax return with your ex, both of you are jointly and severally liable for what is due that tax year. This means that the IRS has the authority to collect the full amount from either of you, regardless of whether one or the other is specifically responsible for or connected to the liability. This is because while the divorce decree is issued by the state, the IRS is a federal entity. However, there are certain tax forms that an individual can file in an effort to obtain relief from joint and several tax liability, such as Form 8857, titled “Request for Innocent Spouse Relief,” which is specifically for those who believe that their current or former spouse should be held responsible for all or part of the tax.

The advent of new scientific procedures that allow for such innovations as cryopreservation have introduced some complications into family law disputes; in particular, the issue of couples freezing embryos and entering into disputes over who has “custody” in the event of separation or divorce are becoming more and more common. While the question of whether frozen embryos should be considered marital property has sparked outrage in a number of states, in Florida, a law already exists addressing the issue. However, like many statutes, it is still written in such a way as to lend itself to plenty of litigation. As a result, this area of the law is still very much developing in the courts, leaving a number of questions unanswered, and warranting the need to address the issue in family law discussions if a couple has engaged in cryopreservation of embryos.

What Florida Law Dictates

Florida’s law specifically dictates that the treating physician and the couple must enter into a written agreement that provides for the disposition of the couple’s eggs, pre embryos, and sperm in the event of death, divorce, or any other unforeseen circumstance, and if they fail to enter into an agreement, any remaining eggs and sperm belong to the party that provided them, while decision making authority regarding the disposition of pre embryos “resides jointly with the commissioning couple.” In the event of death of one member of the couple, absent a written agreement, the eggs, pre embryos, or sperm remain under the control of the surviving member of the couple. The law even addresses the issue of whether a child conceived by an individual’s eggs, pre embryos, or sperm after their death is eligible for a claim against their estate by stating that they are not unless they have been explicitly provided for in the decedent’s will.

In mid-June, federal eviction and foreclosure moratoriums were extended for an additional two months; Specifically, Fannie Mae and Freddie Mac announced that they will extend moratoriums on evictions and foreclosures on single-family homes until August 31. Those who cannot make mortgage payments have the opportunity to seek for forbearance through the Coronavirus Relief and Economic Security (CARES) Act, which has allowed them to reduce or delay payments for up to one year, while those who do not have government backed loans may also be able to obtain forbearance, depending upon their lenders.

In addition, the US Department of Housing and Urban Development also extended loan forgiveness on single-family mortgages insured within the Federal Housing Administration (FHA) program through the end of August, and these efforts were also joined by the Federal Housing Finance Agency. While the moratorium extension specifically applies to homeowners who have FHA-insured Title II Single Family Forward and home equity conversion/reverse mortgage, all servicers have been ordered to halt foreclosure actions and cease evictions of anyone renting single-family properties with the program.