Florida Alimony: How is it Determined in Divorce?

Alimony, or spousal support, is a way to help a spouse who might struggle financially after a divorce in Florida. It’s designed to level the playing field and ensure a fairer outcome when a marriage ends.

However, figuring out alimony in Florida isn’t as simple as plugging numbers into a calculator. There’s no single formula. Instead, judges must weigh many different factors.

This article will walk you through the ins and outs of determining alimony in Florida, including the different types of alimony, the factors courts consider, whether alimony can be changed later, and any recent legal updates. Understanding Florida’s alimony laws requires diving into some gray areas and complexities.

Types of alimony in Florida

Florida law recognizes several different kinds of alimony. Here are the main types:

Bridge-the-Gap Alimony

This is designed to help with short-term needs as you transition from married life to single life. It can help cover expenses like moving costs or the cost of looking for a job. Bridge-the-gap alimony is limited to a maximum of two years, and it can’t be modified once it’s awarded.

Rehabilitative Alimony

Rehabilitative alimony is meant to support a spouse while they’re getting the education or training they need to become self-sufficient. To receive this type of alimony, the spouse must show the court a specific plan for becoming rehabilitated, for example, enrolling in a degree program or starting a business. The duration is usually capped at five years.

Durational Alimony

Durational alimony is awarded for a specific period of time when permanent alimony isn’t appropriate. The length of time you were married often determines how long the payments will last. The maximum duration depends on the length of the marriage: one-half for short-term marriages, 60% for moderate-length marriages, and 75% for long-term marriages. There are exceptions to these guidelines.

Pendente Lite Alimony

This is temporary support that’s provided while the divorce case is ongoing. It’s meant to address immediate financial needs and maintain the status quo while the divorce is being finalized. It ensures that both parties have enough money to live on during the legal process.

Factors influencing alimony decisions

When a Florida judge is tasked with deciding whether to award alimony, and if so, how much and for how long, they’ll consider a lot of different factors.

Financial resources and earning capacity

The court will look at the financial resources of each spouse, including what they own and what they owe. A spouse’s current and potential income is a key consideration.

Even if a spouse is currently unemployed or underemployed, the court will consider what they could be earning. To help determine that, the court may bring in a vocational expert to assess their earning potential.

Standard of living during the marriage

What was life like during the marriage? Did the couple live frugally, or did they live a lavish lifestyle? The court will consider the lifestyle the couple established during their marriage when deciding on alimony.

For example, the court will take note if the couple lived in a million-dollar home and drove foreign luxury cars.

Length of the marriage

In Florida, the length of the marriage is a big deal when it comes to alimony. The law divides marriages into three categories: short-term (under 10 years), moderate-term (10-19 years), and long-term (20 years or more).

The longer the marriage, the more likely it is that alimony will be awarded, and the more likely it is that it will be for a longer duration.

Age, physical, and emotional condition

The court will also take into account the age and health of each spouse. If one spouse has health problems that make it hard for them to work, that will be a factor in the alimony decision.

The court will consider both the physical and emotional well-being of each spouse when deciding on the need for and amount of alimony.

Calculating income for alimony purposes

When a Florida court is determining the right amount of alimony, one of the first steps is to determine the income of each party.

Determining income for employed individuals

If you’re employed by someone else, your income includes wages, salaries, bonuses, and other kinds of compensation. The court will typically look at your pay stubs and tax returns to verify your income. The court may also consider what you could be earning. If you’re voluntarily underemployed, the court may impute income to you, meaning they’ll calculate alimony as though you were working to your full potential.

Self-employment and alimony

If you’re self-employed, figuring out your income can be more complex. It requires a deep dive into your business records and financial statements. The court may adjust your income to account for benefits or personal expenses you pay through the business. It may be necessary to hire a forensic accountant to assess your self-employment income fairly and accurately.

Other sources of income

All sources of income will be considered, including retirement accounts, pensions, investments, dividends, and interest. The goal is to get a clear picture of each spouse’s financial situation. All forms of income must be considered to ensure that alimony is determined fairly.

Alimony: Can it be modified or terminated?

Life circumstances change. So what happens to alimony when they do?

Grounds for modification

A Florida court can modify an alimony order if there’s been a major change in circumstances for either party. Examples of changed circumstances include a significant change in income, retirement, or a large inheritance.

Cohabitation can also be grounds for modifying or terminating alimony. If the person receiving alimony is living with a romantic partner, that’s often grounds for a modification.

When alimony ends

Typically, alimony ends when either spouse dies or when the person receiving alimony remarries. Those are standard conditions.

However, some types of alimony, such as bridge-the-gap alimony, aren’t modifiable under any circumstances. So, it’s important to know what type of alimony was awarded in your case.

How does alimony work with taxes in Florida?

If your divorce was finalized after December 31, 2018, the rules changed. Alimony payments are no longer tax-deductible for the person paying, and the payments aren’t considered taxable income for the person receiving them. This change came about due to the Tax Cuts and Jobs Act of 2017.

This shift in tax law makes alimony negotiations even more important. Understanding these tax implications is crucial for both parties to ensure a financially sound agreement. What looks like a good deal on paper might not be so great after you factor in the tax consequences. So, get informed!

Closing Thoughts

Figuring out alimony in Florida means understanding the state’s laws, financial realities, and the specifics of your own situation. It can be complicated and even overwhelming.

If you’re facing a divorce that involves alimony, it’s a good idea to talk to a Florida family law attorney. A lawyer can help you understand your rights and represent your best interests.

Finally, make sure you stay up-to-date on any changes to Florida’s alimony laws. Knowing the current legal landscape is crucial whether you expect to pay or receive alimony.