Tag Archive for: alimony

The Impact of Remarriage on Alimony Obligations in Florida

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Spousal support, also known as alimony, is influenced by a number of factors in Florida. Drastic changes in income on either side may warrant a change in court order, but what about remarriage or cohabitation? When someone who receives alimony remarries and they have the financial support of a new partner, is it fair for their ex-spouse to continue supporting them? It’s important to know what Florida law says and how to protect your rights.

If you pay or receive alimony and remarriage is on the table, find out how your payments may change. For more personalized guidance, call Crystal Collins Spencer, Attorney at Law at 850-912-8080 now.

How Remarriage Affects Alimony

Remarriage can significantly alter alimony obligations in Florida. When the party who receives alimony remarries, their financial situation often changes significantly, and their needs may become the responsibility of their new spouse. The ex-spouse who pays alimony can then petition the court to terminate alimony payments.

Conversely, if the spouse responsible for paying alimony remarries and incurs new financial obligations, they might petition the court to reexamine their spousal support order. However, it’s important to note that remarriage alone is not a reason for the paying party to request a decrease in or termination of alimony. They have to prove a significant change in their financial situation.

In addition to remarriage, Florida law recognizes that living with a new partner may be a valid reason for changing a spousal support arrangement. If the recipient is living with someone in a marriage-like relationship, the paying spouse may have a basis to request a change to the spousal support order.

Florida Laws on Alimony and Remarriage

Under Florida law, periodic alimony ends when the receiving party remarries. Periodic alimony is paid on an ongoing basis, while lump sum alimony is a set amount paid once. Most couples who work out spousal support in their order agree on periodic alimony. If lump sum alimony is ordered and the other party remarries, the alimony order may not be affected in the same way that periodic alimony would be.

Florida law also covers cohabitation after marriage. For years, couples would use cohabitation as a loophole for one partner to continue receiving alimony while having the financial benefit of a new partner. The law allows for the modification or termination of alimony if the receiving party is involved in a “supportive relationship.” 

This is basically a relationship where they are living with someone to whom they are not related and from whom they receive financial support. If you’re unsure whether or not a relationship would be considered a “supportive relationship” under Florida law, talk to your family law attorney. For example, living with an unrelated roommate would not be a supportive relationship, but living with a close friend who covers your expenses might.

Steps to Take if You or Your Ex-Spouse is Remarrying

Remarriage can shake up a stable coparenting relationship and affect alimony obligations. If you or your ex-spouse is planning to remarry, it’s essential to address the potential fallout right away. Start by consulting with a skilled family law attorney who can provide expert advice tailored to your specific circumstances. Your attorney can help you understand the potential impact of remarriage, ensuring you are well-prepared for any changes that may arise.

If cohabitation rather than legal remarriage is on the table, your attorney can help determine if this arrangement affects alimony. Gathering and presenting appropriate evidence to the court will be crucial in these cases. It’s important to note that proving cohabitation can be a challenge, especially if the person who receives alimony is trying to hide it from you. While remarriage is easily proven via a marriage license, proving cohabitation often requires multiple forms of evidence that stand up to scrutiny from a judge.

It’s also important to communicate openly with your ex-spouse about the upcoming changes, particularly if you have children together. In these situations, you’ll want to maintain the coparenting relationship for the benefit of your children. Attempting to hide remarriage or maintain alimony payments while cohabiting damages the coparenting relationship and puts your children at the center of a problem that does not concern them.

Explore Your Legal Options with Crystal Collins Spencer, Attorney at Law

Whether you receive or pay alimony, knowing how remarriage may affect it can help you be prepared for any changes that may come your way. Let’s talk about your legal options and next steps. Set up a consultation by contacting us online or calling us at 850-912-8080.

New Florida Law Ends Permanent Alimony

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While marriage has changed over the years, so have presumptions about alimony. Permanent alimony was previously allotted when a marriage dissolved after a long partnership, traditionally when the man left a woman who had been a housewife and mother and not earned an income outside of the home.  

Many couples still prefer that arrangement, but women have increasingly sought their own income, independence, and economic stability.

In July, Florida Governor Ron DeSantis signed into law SB 1416, which essentially does away with permanent alimony, making a traditional stay-at-home mom role a less viable option following a Florida divorce.  

The “First Wives Advocacy Group,” made up mostly of older women, was the first to speak publicly about the new law, claiming their lives would be disrupted without permanent alimony.

The group’s founder Jan Killilea, 63, told the News Service of Florida, “We believe by signing it, he (the governor) has put older women in a situation which will cause financial devastation.”

Killilea says she has a severe medical condition and cannot afford a lawyer to fight over alimony. She calls the law “a death sentence for me.”

On the other side of the argument, Florida Family Fairness applauded Gov. DeSantis and the Florida legislature for adding clarity and eliminating permanent alimony.  

A similar bill before the governor one year ago also tried to eliminate permanent alimony. Still, it set up an alternate formula for alimony linked to the years of marriage. Gov. DeSantis rejected that proposal.

Former Florida Gov. Rick Scott vetoed similar bills twice.  

Florida was one of only seven states that allowed permanent alimony, according to the Pensacola News Journal.

Dissolution of Marriage- SB 1416 

Four types of alimony are now considered temporary:

  • Permanent – Now considered temporary, alimony has been awarded when one spouse was court-ordered to continue support of their ex-partner. That continued until the recipient died, remarried, or had some other form of support. That is now temporary at best, while the payor’s ability to pay will be considered, as will the recipient’s ability to obtain skills or education and the mental health of the parties.  

It authorizes to court to consider whether either spouse committed adultery, allowing that to impact the amount of alimony awarded.

  • Bridge-the-Gap – Allows for transitioning from a married partner to being single and, therefore, financially independent. It is now limited to two years.
  • Rehabilitative – Rehabilitative alimony can be awarded, allowing the soon-to-be ex-spouse to receive job training, for example, but that alimony will be limited to five years.
  • Durational – Awards alimony for a specific period. Defining a short-term marriage as less than ten years and long term of 20 years or more. The new law will cap durational alimony to three years or less and may not exceed 35 percent of the difference between the spouses’ income. A marriage of 20 years or more will receive a payment of up to 75 percent of the marriage term. The new statute in Florida allows for the modification of durational alimony.
  • Those married for less than three years will not be eligible for alimony.

Burden of Proof

A spouse seeking alimony or some support or maintenance now has the burden of proof to argue that they need the help and that the other party can pay.

As for existing alimony agreements, they should not be affected but are still modifiable. In some cases, women accepted alimony instead of a division of assets following a divorce. Those agreements could now be the subject of a petition for modification.

The court can consider the age and health of the person making the payments, the traditional retirement age, and the impact a reduction will have on the recipient of the payments.

Your Florida Family Lawyer

Florida family lawyer Crystal Collins Spencer is prepared to tackle the new law’s challenges facing divorcing spouses. Largely uncharted, the law will leave many parties seeking modification of their alimony payments and others needing to return to a more permanent form of alimony, particularly involving high net-worth individuals. The change will also allow the state to explore the “fault” behind an irretrievably broken marriage, a departure from Florida’s traditional “no-fault” status.

There are many new avenues to explore, and Ms. Spencer will be your advocate, delving into all of the variables to seek adequate compensation and fairness. This is not the time to delay. Call our Pensacola office at 850-795-4910 to explore your options and the road ahead.   

Sources:

Fl SB 1416
https://www.flsenate.gov/Session/Bill/2023/1416

WFSU
https://news.wfsu.org/state-news/2023-07-02/a-new-law-puts-an-end-to-permanent-alimony-in-florida

Pensacola News Journal
https://www.pnj.com/story/news/politics/2023/07/03/florida-alimony-reform-law-sb-1416-explainer/70379415007/

Spousal Support Tax Deduction Ending Soon

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Spousal support, also commonly referred to as alimony or spousal maintenance, is a payment from one spouse to another that is either ordered by the court or agreed upon between both parties as part of a final divorce settlement. Spousal support is not ordered or agreed upon in all cases, and the amount and duration of payments is dependent on the specific circumstances of the case.

In determining the amount of the spousal support payment, tax consequences are typically among the main considerations. Because alimony payments are often substantial, the ability for the payor spouse to deduct these payments has often been an important issue. Up until now, payor spouses have been able to deduct alimony payments as long as they followed IRS guidelines. In addition, recipient spouses have been required to claim the payments they receive as income on their taxes.

This all changed last year with the passage of the Tax Cut and Jobs Act (TCJA) of 2017. The TCJA was the most sweeping tax reform legislation since the 1980s. It included hundreds of changes to the tax code for both individuals and businesses. While the cuts in corporate and individual tax rates were the most publicized aspects of the bill, there are several relatively minor changes that significantly impact certain groups of people. Among them is the elimination of the tax deduction for ex-spouses who pay spousal support.

How Alimony Tax Law Changes Impact Divorcing Spouses

Under the TCJA, payor spouses are no longer able to deduct their spousal support payments on their taxes, and recipient spouses are no longer required to claim what they receive as income. At first glance, this may seem to have a binary affect in which the payor spouse is penalized, and the recipient spouse is rewarded. While it may be true that eliminating the deduction for alimony payments penalizes the payor spouse, this does not necessarily mean that the recipient spouse will benefit from the change. In actuality, this change could vastly reduce the combined income of the two spouses, which is not good for either one.

Here is an example of how this might happen. If a payor spouse earns $550,000 per year, their federal tax rate is 37%. Under the old rules, if they pay $100,000 per year in alimony to the recipient spouse (who does not earn any additional income), the income of the payor spouse is reduced to $450,000, moving them into the 35% tax bracket, and giving them a tax bill of $157,500. At the same time, the recipient spouse receives $100,000 and pays 24% in federal taxes, or $24,000.

Under the new law, the payor spouse no longer has the deduction, leaving them with a taxable income of $550,000 and a tax bill of $203,500, an increase of $46,000. Meanwhile, the recipient spouse only saves $24,000. This reduces the spouses’ combined income by $22,000. This type of change could significantly impact negotiations as many spouses might argue that they cannot afford to pay as much in alimony because the deduction was taken away.

How Does this Change Affect Current Spousal Support Agreements?

If you are already paying or receiving alimony, the changes in the TCJA will not affect you. In addition, all divorces finalized on or before December 31, 2018 will still be under the old rules. For divorces finalized on January 1, 2019 and thereafter, the new law will be in effect and payor spouses will lose their spousal support deduction.

If you are currently considering divorce, there is a very short window of time remaining to finalize the proceedings in time to benefit from the old tax laws. If the deductibility of alimony payments is a major concern for you, it is best to take action as soon as possible.

Speak with an Experienced Pensacola Family Law Attorney

Crystal Collins Spencer, Attorney at Law, has over three decades of experience representing clients in Florida who are going through a divorce. Attorney Spencer has an in-depth understanding of the issues couples must resolve during a dissolution of marriage, including spousal support. She works closely with her clients, taking the time to listen and understand their unique needs and concerns, and working tirelessly to protect their rights and interests.

Call our office today at 820-912-8080 to schedule a consultation, or you may send us a secure and confidential message through our web contact form.