alimony

December 30, 2017

What Components of Income are Included in Calculating Alimony and Child Support Payable by a Service Member?

Military-Service-300x211 In the State of Florida, one of the most unique issues in a military divorce is the calculation of alimony and child support based on the income of the parties. When one spouse is OR both spouses are employed as service members, it is important to recognize that aspects of income, some not even taxable by the IRS, will be considered income when it comes to providing for your children and former spouse after a Florida Dissolution of Marriage.

Calculating income for a Florida military divorce or paternity action creates special issues, because of the differences in how service members are compensated as compared to the civilian workforce. Most of the pay information is found on the Leave and Earning Statement, which details how much you (or your partner) earns, their rank, years of service, but also any deductions. In every day terms, this is essentially the equivalent to your pay stub.

When considering what is inclusive income, a Florida court will consider the service member’s pay first. Thus, the basic pay, hazard pay, combat pay, and flight pay will definitely be considered in the calculation of the available income. These forms of pay are usually taxable, therefore it should come as no surprise that they are income. Military families need to also include the allowances that decrease a service member’s cost of living, such as housing allowances (BAH), disability pay, subsistence allowance (BAS), per diem payments, and cost of living adjustments (COLA). These “allowances” not only decrease the daily living expenses of the military spouse, but also act as an increase in their income, and become a complicated issue for family law judges to determine when considering child support calculations. These additions are usually considered to be income, as they are cash benefits which ultimately would be considered components of gross income when calculating child support of the families’ children.

November 15, 2017

What are the Tax Implications of a Florida Divorce? Proposed Tax Reforms and Alimony

By Wood, Atter & Wolf, P.A.

Tax-Reform-300x300 When couples divorce in the State of Florida, one consideration is will there be alimony and if so, how much for how long? Alimony comes in different shapes and sizes, but one aspect has consistent: the spouse that pays the alimony is allowed to reduce his or her payments from the gross income in the IRS Income Tax filings, and the receiving spouse needs to include these payments in his or her gross income. This may soon, however, become a thing of the past. Tax reform is one of the biggest issues in Washington D.C., which will have an impact on every person in the United States. There are many aspects in the proposed 2017 tax reform, but one that seems to less talked about is the plan to change how alimony is treated. Instead of the paying spouse being able to deduct alimony payments from gross income, the proposed reform will no longer recognize that deduction. Further, the receiving spouse will no longer have to claim the alimony as part of his or her income.

Since tax reduction has been one way to make alimony more palatable to the paying spouse, this change will have significant impact on the likelihood of couples reaching mediated agreements or settlements in a Florida divorce case. One reason given for the proposed change is that while most paying spouses claim their alimony deduction, many receiving spouses do not include alimony in their taxable income. This possible change, however could have considerable effects on how divorce will evolve, as family law attorneys and judges will need to consider the tax implications far more closely when determining if alimony is not only appropriate, but also what the likely ramifications will be to the payor spouse.

Alimony is one of those issues that continues to be an area of contention, battle, and court fight between divorcing spouses. While it is reasonable that the spouse who stayed home to raise the children, should have some financial support, the legislature and courts in Florida have already started to chip away that at the presumption that financial support from a divorced spouse should last for decades or the rest of a spouse’s life. The burden to overcome not only the need for alimony, but now the ability of a paying spouse will become far more difficult to show in court if this proposal ultimately becomes law.

March 8, 2017

What is a Marriage of Moderate Duration?

By Wood, Atter & Wolf, P.A.

Fla Stat. §61.08(4) provides statutory guidelines for Florida courts to consider when evaluating importance of the duration of a marriage as a factor for alimony consideration. In order to categorize the duration of marriages, courts look from the date the marriage began until the date one of the spouses filed for dissolution of marriage. According to the statute, short term marriages are marriages under seven (7) years, and long term marriages are all marriages that last longer than seventeen (17) years. However, there is a “gray area” in the 10-year gap between these years. The marriages falling between the seven (7) to seventeen (17) year marriage lengths are known as marriages of “moderate duration.”

Categorizing the duration of a marriage is important. The court looks to a multitude of factors, found in Fla. Stat. §61.08 (2)(a-j), when considering the amount and the duration of an alimony award. A marriage categorized as a marriage of moderate duration is particularly important when considering an award of permanent alimony.

If a marriage is a long term marriage, as defined in the statutes, the marriage has with it a presumption in favor of a permanent alimony award. If after the court considers all other alimony factors and finds that no other alimony type would be proper, permanent alimony can be awarded. Whereas, a short term marriage would absolutely not have that same presumption. For a permanent alimony award in a short term marriage the court would have to find that exceptional circumstances exist to support such an award. Whereas, a moderate term marriage is open to a permanent alimony award also, but a higher standard of proof is necessary when awarding permanent alimony in cases of moderate duration marriages. Clear and convincing evidence as to the alimony factors must be presented to the court to prove that the receiving spouse is entitled to alimony.

February 23, 2017

What is Nominal Alimony?

By Wood, Atter & Wolf, P.A.

money-chained With many divorce cases also comes the notion of alimony. There are a number of different types of alimony in Florida, varying from permanent to rehabilitative. In some instances judges will award a party with “nominal alimony.” But, while you wont see this form of alimony in the statutes, you will see that this has developed in case law over the years. Nominal Alimony is not a form of alimony like rehabilitative, permanent, or durational, instead the nominal alimony designation is simply a space preserver to allow the receiving party to apply for a modification at a later date. Few states, including Florida, recognize this type of alimony award.

Nominal alimony differs from rehabilitative alimony because rehabilitative alimony is temporary for receiving spouse until he or she can get on his or her own feet. This is typically awarded in cases where the receiving spouse surrendered their ability to work during the course of the marriage in order to stay home and care for the kids or conduct other household duties. Rehabilitative alimony will temporarily support the receiving spouse until he or she is able to seek employment.

Whereas with nominal alimony, the court may order a spouse to pay a significantly small amount, as small as $1 a year, until that spouse is able to pay larger amount. This amount is not meant to support the receiving spouse, but instead preserves the receiving spouse’s right to receive alimony at a later date. It also reserves the court’s jurisdiction to revisit the issue of alimony should the paying spouse’s circumstances improve. The court may choose to award nominal alimony if it is likely that the paying spouse’s circumstances will change in the future and that this change would warrant alimony for the receiving spouse. It is the court’s decision to determine whether or not to award nominal alimony. If the court does not feel enough evidence exists to prove that the spouse’s financial circumstances will change in the foreseeable future, the court can choose not to award nominal alimony and instead enter an award for one of the statutory forms of alimony available.

December 25, 2016

Do I Qualify for Permanent Alimony?

By Wood, Atter & Wolf, P.A.

Florida law allows for a court to grant various types of alimony awards. The types of alimony in Florida are lump sum, durational, temporary, rehabilitative, bridge the gap, and permanent. Naturally most people who would qualify as the recipients desire permanent alimony. But, simply desiring permanent spousal support is not alone sufficient grounds to be awarded permanent spousal support. The Florida courts consider a variety of factors prior to the entering of an alimony award. While there are a myriad of factors that contribute to the calculation of an alimony award, I typically begin my assessment of the possibility of alimony by asking my clients a few key questions.

I begin my assessment of the alimony possibility in a case by first looking at the needs of the possible recipient spouse, the ability of the obligated spouse to pay, and the length of the marriage. While permanent alimony can be granted by agreement of the parties in dissolution cases of short term, moderate term, or long term, the court tends to limit permanent alimony awards to marriages of long term. Florida marriages under seven (7) years are considered short term marriages, marriages seventeen (17) years and over are considered long term and the marriages that fall in the middle are considered either “gray area” or moderate marriages Fla. Stat. 61.08. While a marriage may fall into the moderate term may not be automatically open to the permanent alimony award, the court will consider the permanent alimony award in a moderate term marriage if the court has compelling reason to do so based on the factors used when considering an alimony award.

Permanent does not actually mean permanent. While some alimony awards are deemed non-modifiable a permanent alimony award does not always come with that level of protection. Some parties can choose to contract into a permanent non-modifiable alimony award, but if I had a client who was interested in agreeing to a permanent non-modifiable alimony award I would strongly suggest a reconsideration of that decision. Life changes, circumstances change, and those changes are often unpredictable. Due to the unpredictable nature of life the statutes allow for modifications of some alimony awards. While a permanent alimony award would secure the receiving spouse alimony until they marry, die, or cohabitate in a supportive relationship, it can also be modified in some circumstances. While that court may modify the permanent alimony award the court will take into consideration if the award was granted by a judge or entered into voluntarily by agreement by the parties. Florida case law, in some districts, supports the notion that modification of alimony that was entered into by agreement of the parties, rather than by a decision of the court, has a greater difficulty overcoming the burden of proving a substantial change in circumstances that was not contemplated at the time of the setting of the alimony.