Category: Alimony

Circumstances can change unexpectedly in anyone’s life. Florida courts recognize that changes are a normal part of life, which is why they allow ex-spouses to request a modification of alimony when there is a substantial change in circumstances.

If you are considering modifying alimony, you should speak with a Tampa family lawyer to help you understand your rights and options, whether you are the payor or supported spouse.

Alimony types and restrictions for modification

Florida law allows parties to modify certain – but not all – types of alimony following a divorce. Pursuant to Section 61.08, Florida Statutes, Florida law recognizes the following types of spousal support:

Each of them has unique rules and restrictions for modification. Whether or not you can modify your alimony award depends on the type of spousal support and the circumstances that made you want to request a change.

Any divorce finalized after December 31 will not be able to take advantage of the tax deduction, which was eliminated in the Tax Cuts and Jobs Act. The deduction disappearing has a number of couples rushing to get things finalized before 2019 arrives, as payers (in the higher income tax bracket) will no longer be able to deduct the payments on their annual returns, while recipients will no longer be paying taxes on alimony as income.

In fact, payers will now owe the Internal Revenue Service taxes on the amount paid, while recipients will owe nothing. According to reports, last year alone, close to 600,000 taxpayers claimed deductions for close to $13 billion in alimony paid the previous year. The elimination of the deduction was reportedly intended to offset budget deficits created by lowering the corporate tax rate from 35 to 21 percent.

And unfortunately, however, couples’ needing to come to an agreement isn’t the only hurdle: There must also be enough judges—and time—to sign off on divorce agreements before the end of 2018 in order for couples to take advantage of the alimony deduction. 

According to data from the federal Office of Child Support Enforcement, more than $100 billion is currently pending in back payments owed to parents with custody of their children. In 2011 alone, unpaid child support totaled more than $14 billion.

Many people do not realize just how big of an issue failure to pay child support actually is, and this issue is only compounded when your child’s parent not only fails to pay child support, but also is also unemployed, untraceable, and/or has additional children from a separate marriage. In circumstances like these, working with an experienced family law attorney is the best way to ensure that you remain protected. Below, we discuss some steps you can take if you are owed child support:

Know Your Rights

You and your attorney should discuss your legal rights and responsibilities, as well as the pros and cons of going to court or entering into a settlement. One thing that you absolutely cannot do is prevent your ex from seeing your child in retaliation for failing to pay child support.

People tend to make a lot of assumptions when it comes to divorce, assumptions that can either leave you surprised and in a bind, or looking bad to a court, depending upon what activities you engaged in.

Below, we discuss some factors, issues, and behaviors that surprisingly do not impact divorce settlements.

Florida has what’s known as an “equitable distribution” policy; meaning that marital property is fairly divided between the divorcing parties. Therefore, even if you have been a stay-at-home parent or vice versa—you have been working more—this does not mean that the one earning the money ends up with a larger overall share.

Alimony is a sum of money, lump sum or over a period of time, which a husband or wife is required to pay to his or her former spouse after a divorce and ordered by the court. In fact, in deciding alimony, courts may consider the following:

Also keep in mind that not every inheritance that you receive during your marriage turns into fair game for your divorce negotiations; in fact, the law dictates that as long as this asset is kept separate and was not commingled with marital assets, it can be classified as a non-marital asset to which the non-owning spouse does not have access. If this is of concern, you will want to ensure that you work with an experienced divorce attorney to keep it separate from your shared accounts or assets, regardless of what stage you are at in thinking about or negotiating a divorce settlement.

An interesting article featured in This Insider on June 16th presented a new perspective on divorce; one that reflects marriage as a success instead of a failure. This is rooted in the concept that, if one of the best outcomes of marriage is personal growth, growing out of the relationship is simply one path that growth might take. Instead of change being fearful, it can, instead, be embraced.

In other words, if marriage exposes your selfishness and immaturity, and continually demands that you grow in ways you could not have anticipated, sometimes both partners change so drastically that they realize their marriage isn’t helping them live the life they’d like to.

A marriage that ends in divorce can ultimately teach you about yourself and how you behave in relationships, and deciding to leave one when it is unfulfilling can even be likened to leaving a dead-end job; it means that you knew when it was time to make a change. Conversely, what could be considered a failure is staying in a marriage—or similar situation—that is “sucking the life out of you.”

It is easy to be bombarded by information here and there about how divorce leads to more complicated financial circumstances. However, if you do it right—and work with the right attorney—you can complete the process without placing a financial strain on your family. Below, we discuss some of the pointers to keep in mind as you approach the divorce process:

Interview Several Different Attorneys

 Make sure that you do your homework when it comes to selecting your divorce attorney. Don’t just take one person’s recommendation or work with the first person who comes up online; instead, interview several different attorneys and note who is paying attention, providing you with detailed information on how billing works, etc.

Trust your intuition when it comes to deciding who you are comfortable with. If you sign an engagement letter, make sure that you and your attorney are very clear on what the hourly rate will be. Also make sure to ask whether the attorney works with any junior attorneys and/or paralegals, as that can sometimes lower the overall costs.

No divorce is the same as another—each one is unique based upon the relationship and the unique circumstances involved. Still, all divorces have at least one thing in common: the need to make intelligent financial decisions if you’re going through it. Below, we provide some guidance on how to ensure that you are “financially free” after divorce:

Think Of Debt & Credit Scores

While many people contemplating divorce are instinctively concerned about the division of assets, many do not realize that a court also divides financial responsibilities as well, such as debt. Most married couples share accounts, and it can be difficult to maintain your credit if your ex stops paying the bills on a shared account—even if you both agree to take responsibility for this or that credit card or bill. Remember if your name is on something, you are responsible for it—regardless of what the court documents indicate.

When couples are contemplating or going through divorce, they already have too much to worry about: Depending upon their particular circumstances, that often includes the family home, the children, assets, and more. The last thing that most couples anticipate is also having to tackle an insurance dispute.

And yet, life insurance policies are one of the most important aspects of the divorce, but without ensuring that the proper documentation is in place, divorcing couples could be setting themselves out for a serious battle.

Support in Perpetuity

Life insurance policies can provide support and assurance where other payments—such as alimony—cannot, as they terminate upon death. Under the law, former spouses can remain named beneficiaries to life insurance policies even after the divorce has long been finalized.

Carefully Craft Your Divorce Settlement

A recent decision out of the United States Court of Appeals for Sixth Circuit upheld the importance of divorce decrees (i.e. settlements) even over later changes in named beneficiaries in terms of what qualifies for a qualified domestic relations order under the Employment Retirement Security Act. This decision reinforces the importance of carefully crafting settlement agreements.

The new tax bill has received a lot of attention in the media. However, many do not realize that it will have implications on divorce and alimony payments (in addition to tax deductions).

Below, we discuss some of the ramifications of the law in greater detail, with a focus on how it complicates divorce.

Perhaps most notably, the Tax Cuts and Jobs Act made significant changes to alimony, eliminating the ability for the alimony payer to deduct the payments from his or taxes, and the mandate for the receiver to pay taxes on alimony payments as income, as applied to divorces entered into after 2018.

Being able to deduct alimony payments was helpful to many families, as it allowed the spouse in the higher tax bracket to transfer money to the spouse in the lower tax bracket, thus allowing for settlements that would pave the way for each party to receive a benefit.

Under the new law, because the alimony payer’s income will be taxed at a higher rate, there will be less money to divide overall between spouses, with more money in general going to the government in the form of taxes.

A new Florida alimony bill was filed on January 21, 2017. Below are some of the biggest adjustments we found made to the alimony bill.

Are you facing divorce and have questions regarding the new alimony bill? When it’s a matter of importance, let our qualified alimony attorneys take the lead. HD Law Partner’s divorce and alimony attorneys have over 50 years of collective experience to provide you with the representation you need. Contact us today for help.

Source: http://m.flsenate.gov/Session/Bill/2017/0283/BillText/__/PDF

Posted in Alimony, Divorce |

Although the state of Florida has abolished the concept of fault when individuals file for divorce, that doesn’t make the process of obtaining a divorce any simpler, nor does it completely eliminate the impact that an individual’s behavior during marriage has when it comes to important decisions that come out of divorce, such as property distribution, alimony, timesharing, and related issues.

In addition, many would be surprised to find out that adultery (or, rather, “living in open adultery”) is still considered to be a crime in the state of Florida, thus, it’s fair to say that behavior during marriage–regardless of what’s listed in state statute as technical grounds for dissolution–can have its effects.

The No-Fault Divorce Law in Florida

Florida being a no-fault divorce state, which means parties can dissolve their marriage by indicating that the marriage is “irretrievably broken.” When either spouse files, they must simply prove that they have been married and at least one has been a Florida resident for at least six months immediately preceding the filing date.