Category: Alimony

Proving Income for Alimony in the Big Apple

Former New York City Mayor, Rudolph W. Giuliani, filed for divorce and set off a rancorous battle, in part, over how much income the former Mayor actually makes. Proving his income is important for determining her alimony and can be a tough question in the Big Apple.

income divorce big apple

It’s up to you New York

In caustic legal proceedings the couple has battled over many things like kitchen renovations, splurges of $7,131 on fountain pens and $12,012 on cigars. But the primary issue is Mr. Giuliani’s current income.

His wife believes that Mr. Giuliani left his law firm, Greenberg Traurig, in 2018, a month after the divorce was filed, and chose to work for President Trump pro bono in order to reduce any future alimony.

Mr. Giuliani earned $7.9 million in 2016 and $9.5 million in 2017, funding the couple’s roughly $230,000 a month lifestyle. In 2018, the year he began working for the president, Mr. Giuliani’s earnings dipped to $6.8 million, and he has suggested that this year’s income will be well below that.

Mr. Giuliani now gives his wife $42,000 a month, as well as covering other bills, including the carrying costs for their properties, as ordered by Judge Katz in February. Mrs. Giuliani must pay for the landscaping at their home in Southampton.

Mrs. Giuliani says she had no choice but to take him to court, to prove what he is actually worth financially and to get what she believes she is fairly entitled to.

Florida Alimony

I’ve written about the very public circus-like Giuliani divorce before, and on the subject of alimony in Florida. In every Florida dissolution of marriage case, the court can grant alimony to either party – husband or wife.

Not many people realize there are several types of alimony in Florida: bridge-the-gap, rehabilitative, durational, or permanent alimony.

Florida courts can also award a combination of alimony types in a divorce. Alimony awards are normally paid in periodic payments, but sometimes the payments can be in a lump sum or both lump sum and periodic payments.

In determining whether to award alimony or not, the court has to first make a determination as to whether a wife or a husband, has an actual need for alimony, and whether the other party has the ability to pay alimony.

Proving the ability to pay is one of the central issues in the Giuliani divorce right now because his income dropped right before he filed for divorce. Typically, courts consider any type of earned income or compensation — that is, income resulting from employment or other efforts — along with recurring passive income, such as dividends on your investments, in establishing the amount of support you will be responsible to pay.

In Florida, once a court determines there is a need and the income available to pay alimony – sometimes referred to as the ability to pay alimony – it has to decide the proper type and amount of alimony. In doing so, the court considers several factors, some of which can include:

  • The standard of living established during the marriage.
  • The duration of the marriage.
  • The age and the physical and emotional condition of each party.
  • The financial resources of each party, including the nonmarital and the marital assets and liabilities distributed to each.
  • The earning capacities, educational levels, vocational skills, and employability of the parties and, when applicable, the time necessary for either party to acquire sufficient education or training to enable such party to find appropriate.

But, after establishing a need for alimony, how much income is there to determine ability to pay?

Life in the Big Apple

Mrs. Giuliani said in an interview.

“I feel betrayed by a man that I supported in every way for more than 20 years, I’m sad to know that the hero of 9/11 has become a liar.”

But to hear Mr. Giuliani’s circle and his legal team tell it, Mrs. Giuliani’s endgame tactics are merely an extension of her personality, which they have not and do not describe kindly.

They portray her as being a social climber through marriage, someone who rose from her background as a nurse by marrying twice, before meeting the mayor of New York City.

And once she found her third husband, Mrs. Giuliani was accused of pushing her new husband’s children and many of his nearest friends away in an effort to control him.

“She has put 20 years into this relationship,” said her friend Andrea Ackerman, a real estate agent from whom she has purchased six homes. “She is not folding. Not this time, uh-uh.”

If there is one regret for Mr. Giuliani as his life once again upends in public, it is that his personal problems end up ensnaring the people around him, he said in an interview:

“Everybody’s life around you is being disrupted. You get the pain of that, but also you get the satisfaction of what it means to be in public office — they don’t. There is a certain amount of guilt in that.”

The New York Times article is here.

 

Short Term Alimony Face Off

According to TMZ, actor Nicolas Cage’s estranged wife, Erika Koike, doesn’t care their Las Vegas marriage only lasted for four days before Cage filed for an annulment. Koike says her marriage is valid, wants ‘the rock’ on her finger, and short term alimony.

‘Leaving Las Vegas’

The actor, 55 and his new bride, 34, a makeup artist, had been dating for over a year when ‘the Family Man’ filed for a marriage license in Las Vegas on March 23.

There was no ‘honeymoon in Las Vegas’, and now their ‘face off’ in a Clark County, Nevada court will be about the validity of their short-term marriage.

‘Seeking justice’, Cage filed for the annulment four days later in claiming that he was too drunk to comprehend what he was doing when they were married — and that he was unaware of Koike’s criminal record at the time.

Erika Koike then filed an answer to the complaint for annulment and a Counterclaim for divorce in court a few weeks after the petition was filed – which Cage filed just four-days after they were married in Las Vegas.

In the pleadings, Cage claims he “reacted on impulse and without the ability to recognize or understand the full impact of his actions,” and also says the marriage was based on fraud.

Florida Short-Term Alimony

I’ve recently written about Cage’s divorce and annulment petition. On the topic of alimony and spousal support, the length of a marriage is important. Florida Statutes actually define what the length of your marriage means.

Length of a Marriage

For example, in order to determine alimony, there is a rebuttable presumption in Florida that a short-term marriage is a marriage having a duration of less than 7 years.

Florida Statutes define a moderate-term marriage as a marriage having a duration of greater than 7 years but less than 17 years. And, a long-term marriage is a marriage having a duration of 17 years or greater.

How do you measure the marriage term? In Florida, the length of your marriage is the period of time measured from the date of your marriage until the date of filing of an action to dissolve your marriage.

In Nicolas Cage’s case, a four-day marriage would be considered “short-term” under Florida law. Is there short-term alimony for a short-term marriage?

Types of Alimony

The Length of the marriage is very important when it comes to determining the kind of duration of alimony payments.

For example, permanent alimony is generally for longer term marriages if the statutory criteria are met. In shorter term marriages and for moderate term marriages, permanent alimony may be considered, but the burden of proof is much higher.

Conversely, bridge-the-gap alimony is generally awarded to allow a person to transition from being married to being single. So, bridge-the-gap alimony is designed for short-term needs. In fact, the length of an award bridge-the-gap alimony may not exceed 2 years.

Durational alimony helps provide a person with economic help for a set period of time after short or moderate length marriages or following a marriage of long duration if there is no ongoing need for support on a permanent basis.

The length of your marriage also factors in to property divisions. When a court divides the marital assets and debts, the court begin with the premise that the distribution should be equal. One of the factors a court can look to in justifying an unequal distribution includes the duration of the marriage.

‘National Treasure’ Hunter

Koike claims Cage’s impulsive actions don’t qualify for an annulment. As for the alleged fraud, she argues Cage asked her to start again “in the right way” just 12 days after filing for an annulment … proving their relationship’s legitimate.

If Cage can successfully prove a case for annulment, Koike would not be eligible for spousal support as she would not be his spouse.

However, if Cage fails, and the court finds he had the capacity to marry and wasn’t defrauded, Koike would be entitled to spousal support.

According to TMZ, Koike argues she lost career opportunities during her long relationship with Cage and her reputation’s been damaged by his allegations. She’s also asking him to pay for her legal fees.

Cage has been married three previous times. Cabe was married to Alice Kim, Lisa Marie Presley, and Patricia Arguette.

The TMZ article is here.

Florida Alimony Reform Sausage

It’s been said laws are like sausages, it is better not to see them being made. If true, then it’s best you not read the two new Florida alimony reform bills recently introduced into the Florida House and Senate. For the unafraid, below are a few provisions of the House bill worth watching.

Alimony Reform

The Current Chorizo

In Florida, alimony is awarded to a spouse when there is a need for it, and the other spouse has the ability to pay for alimony. As I have written before, alimony can take various forms.

For example, alimony can be awarded to “bridge the gap” between married and single life. This is usually a short-term form of alimony, and in fact, can’t exceed two years.

Alimony can be rehabilitative – to help a party in establishing the capacity for self-support by developing skills or credentials; or acquiring education, training, or work experience.

Durational Alimony is awarded when permanent periodic alimony is inappropriate. The purpose of durational alimony is to provide you with economic assistance for a time after a short or moderate term marriage, or even long marriages, if there is no ongoing need for support on a permanent basis.

Permanent Alimony is awarded to provide for your needs and necessities of life as they were established during your marriage, if you lack the financial ability to meet your needs and necessities of life following a divorce.

The House Hot Dog

Alimony reform is a nationwide phenomenon.

Currently, there are two bills in Florida trying to be passed to amend our alimony statute and impact other statutes. However, many state bills, like Florida’s, are in progress, or are constantly evolving.

This year’s two bills fundamentally change many family law statutes and cases. Briefly, what we consider to be long and short marriages would change. This is an important measuring stick, because the types of alimony granted can change depending on the duration of a marriage.

Right now, for purposes of determining alimony, there is a presumption that a short-term marriage is less than 7 years, a moderate-term marriage is greater than 7 years but less than 17 years, and a long-term marriage is 17 years or more.

Under the new House bill, a long-term marriage would be 20 years or more, a mid-term marriage would be more than 11 years but less than 20 years, and a short-term marriage would be a marriage of less than 11 years.

Another proposed change concerns the type of alimony. Right now, when a court determines the type and amount of alimony, the court weighs several factors, including, the standard of living, the age and the physical and emotional condition of the parties and sources of income available to pay alimony.

Under the new House bill, a trial court awarding alimony would have to prioritize an award of bridge-the-gap alimony, followed by rehabilitative alimony, over any other forms of alimony. Additionally, the new bill eliminates permanent alimony.

The Equal Time-Sharing Bratwurst

Florida has a public policy that each child has frequent and continuing contact with both parents after the parents separate or divorce and tries to encourage parents to share the rights and responsibilities, and joys, of childrearing.

However, there is no presumption for or against the father or mother of the child or for or against any specific time-sharing schedule when creating or modifying a parenting plan of the child.

The new House bill would dramatically alter the law. The proposed bill would make it Florida law that equal time-sharing with a minor child by both parents is in the best interest of the child unless the court finds one of the stated reasons not to.

The House bill is available here.

 

Short Term Alimony for a Three-Minute Marriage

In Kuwait, a newly married woman demanded a divorce within three minutes of signing her marriage contract. The Kuwaiti marriage is one of the shortest on record. But here’s an interesting question: what if she asked for short term alimony?

Short Term Alimony

Sands of Time

What lead to such an abrupt change of mind about nuptials? According to Kuwaiti news sources, the newly married woman tripped before exiting the courthouse with her husband after the judge married them.

Her newly minted husband made the “classic” new husband mistake: he started laughing at her for tripping and then called her “stupid”.

The bride became so infuriated with her new husband’s naïve mistake, she returned to the courthouse and demanded a divorce from the judge who just married them.

The Kuwaiti judge agreed and served an annulment just three-minutes after he originally married them. The couple, who live in Kuwait, never even left the courthouse as husband and wife.

So, is she entitled to any form of alimony?

Florida Alimony

I’ve written about divorce and the length of a marriage before. Florida Statutes actually define what the length of your marriage means. For example, in order to determine alimony, there is a rebuttable presumption in Florida that a short-term marriage is a marriage having a duration of less than 7 years.

Florida Statutes define a moderate-term marriage as a marriage having a duration of greater than 7 years but less than 17 years. And, a long-term marriage is a marriage having a duration of 17 years or greater.

How do you measure the marriage term? In Florida, the length of your marriage is the period of time measured from the date of your marriage until the date of filing of an action to dissolve your marriage.

In the Kuwaiti case, a three-minute marriage would be considered “short-term” under Florida law. Is there short term alimony for a short term marriage? The Length of the marriage is very important when it comes to determining the kind of duration of alimony payments. For example, permanent alimony is generally for longer term marriages if the statutory criteria are met. In shorter term marriages and for moderate term marriages, permanent alimony may be considered, but the burden of proof is much higher.

Conversely, bridge-the-gap alimony is generally awarded to allow a person to transition from being married to being single. So, bridge-the-gap alimony is designed for short-term needs. In fact, the length of an award bridge-the-gap alimony may not exceed 2 years.

Durational alimony helps provide a person with economic help for a set period of time after short or moderate length marriages or following a marriage of long duration if there is no ongoing need for support on a permanent basis.

The length of your marriage also factors in to property divisions. When a court divides the marital assets and debts, the court begin with the premise that the distribution should be equal. One of the factors a court can look to in justifying an unequal distribution includes the duration of the marriage.

Are congratulations in order?

Many on the internet who heard about the case responded in support of her choice, lauding her decision because, as one put it, “If this is how he acts in the beginning of their lives together, then its best she leaves now.”

Another responded, “Marriage without respect is a failed one from the start.”

A Twitter user commented: “This woman is a queen” In another case a bride who insulted her husband-to-be when she arrived at the altar and demanded the groom change his outfit. It’s believed to be the shortest marriage in Kuwait’s history.

The Khaleej Times article is here.

 

Alimony Humbug

Arctic Monkeys drummer Matt Helders is ending ‘a certain romance’ and just filed for divorce from his wife Breana McDow-Helders after two years of ‘crying lightning.’ But alimony may not be an issue in this short-term marriage. Why?

Alimony Humbug

R U Mine?

According to the divorce papers filed, Breana and Matt separated at the end of October. Matt is asking for joint legal and physical custody of their daughter.

Some reports though, Helders says they’ve mutually agreed to not pay each other spousal support after their two-year marriage.

Florida Alimony

Alimony is a frequently written about subject in Florida. Spousal support is governed in Florida by a statute. The alimony statute requires judges to consider several factors, including the duration of the marriage.

The duration of the marriage is an important factor to consider in awarding alimony. For purposes of determining alimony, there is a rebuttable presumption that a short-term marriage is a marriage having a duration of less than 7 years.

By contrast, a moderate-term marriage is a marriage having a duration of greater than 7 years but less than 17 years. Not surprisingly, a long-term marriage is a marriage having a duration of 17 years or greater.

The length of a marriage is measured from the period of time from the date of marriage until the date of filing of an action for dissolution of marriage. This can be important, for example, after a marriage of short duration, permanent alimony would not usually be available unless the trial judge makes written findings of exceptional circumstances to award permanent alimony.

Worst Nightmare

The couple got hitched in Italy back in June 2016. They have a 3-year-old daughter together. It’s unclear what led to the split.

Matt and Breanna started dating way back in 2011, and they got engaged in 2013 before tying the knot in Europe.

Matt is one of the founding members of the indie rock band, and he’s recorded six studio albums with the Arctic Monkeys. The band has also been nominated for five Grammy Awards.

He has played drums and provided backing vocals on all six of the band’s studio albums. Matt also provided the drum tracks on Iggy Pop’s 2016 studio album Post Pop Depression and played on Lady Gaga’s 2016 album Joanne.

The Daily Mail article is here.

Photo credit Bill Ebbesen

Alimony and Cohabitation

Actress, Alicia Silverstone, is on the hook for large monthly alimony payments following the finalization of her divorce from ex-husband Christopher Jarecki. What’s different is that alimony can end if he cohabitates with someone. What is Florida law on alimony and cohabitation?

Alimony cohabitation

The Wonder Years

According to media sources, the Clueless star is responsible for paying $12,000 per month in spousal support until Jan. 31, 2024, with the due date being the first of every month, according to court documents obtained by ET.

While the 42-year-old actress is required to pay the substantial spousal support sum for the next five years, the agreement provides that if Jarecki, also 42, lives with a “romantic partner” for at least five months out of a 12-month period, Silverstone’s financial obligation “shall immediately terminate.”

The couple also agreed to share joint physical custody of their 7-year old sone, with an equal and fair custody schedule to be agreed upon by both parents.

Florida Alimony & Cohabitation

I’ve written about alimony issues before. An early end to alimony because of cohabitation can be a clause anyone who pays alimony would want. As Silverstone’s divorce shows, very often it can be women paying alimony to men.

In Florida, cohabitation is referred to as a “supportive relationship.” In Florida, our statute allows a court to reduce or terminate an award of alimony if a supportive relationship exists between the recipient of alimony and the person the alimony recipient resides with.

The Crush

In determining whether a supportive relationship exists, the court considers the following:

  • The period of time that the obligee has resided with the other person in a permanent place of abode.
  • The extent to which the obligee or the other person has supported the other, in whole or in part.
  • The extent to which the obligee or the other person has performed valuable services for the other.
  • Whether the obligee and the other person have jointly contributed to the purchase of any real or personal property.
  • Evidence in support of a claim that the obligee and the other person have an express agreement regarding property sharing or support.
  • Whether the obligee and the other person have provided support to the children of one another, regardless of any legal duty to do so.

But simply proving a supportive relationship is not enough. Also, people can waive their right to seek modification of alimony in a settlement agreement. Cohabitation is not as easy to prove as you might think. Even if you can prove a supportive relationship, you must check your agreement to see if you can even modify alimony.

Clueless

The Silverstone agreement also has a clause stating that if his “housing costs” are reduced by at least 50 percent as a result of sharing a residence with any unrelated adult for five months out of a 12-month span, Silverstone would also be free from her support payments.

The pair started dating in 1997 and tied the knot in 2005. They later welcomed their son in May 2011. When Silverstone filed for divorce earlier this year, the actress’ rep released a statement to ET addressing the nature of their split.

According to court documents obtained by ET at the time, Silverstone cited “irreconcilable differences” as the grounds for the termination of their 13-year marriage.

The ET article is available here.

 

Alimony Home Run

Major League Baseball’s Pete Rose said in court documents he’s in “poor health” as he attempts to finalize a divorce from his estranged wife, Carol Rose, so he can marry girlfriend Kiana Kim. Pete Rose is looking to score a home run by limiting his alimony exposure.

Alimony

Charging the Mound

Rose filed the divorce pleading because the noted the longtime Cincinnati Reds superstar, who’s now 77, is dealing with a myriad of physical issues.

“[Rose] is currently disabled and can barely walk or travel,” the filing read. “His health is deteriorating and [he] has a heart condition and [is] on blood thinners.”

The documents seem to be in relation to establishing his income as part of the divorce. The papers say he lost two jobs in 2017, Fox Sports and Hit King, so his yearly income has dropped by more than half.

Rose says he still makes $453,000 a year according to TMZ Sports but has “great debts” and major expenses including attorney’s fees.

Florida Alimony

I’ve written about alimony in Florida before. In every dissolution of marriage case, the court can grant alimony to either party – husband or wife.

There are several types of alimony in Florida: bridge-the-gap, rehabilitative, durational, or permanent alimony. The court can also award a combination of alimony types.

Alimony awards are normally paid in periodic payments, but sometimes the payments of alimony can be in a lump sum or both lump sum and periodic payments.

In determining whether to award alimony or not, the court has to first make a determination as to whether someone like Rose’s wife has an actual need for alimony, and whether the other party has the ability to pay alimony.

Once a court determines there is a need and ability to pay alimony, it has to decide the proper type and amount of alimony. In doing so, the court considers several factors, some of which can include:

  • The standard of living established during the marriage.
  • The duration of the marriage.
  • The age and the physical and emotional condition of each party.
  • The financial resources of each party, including the nonmarital and the marital assets and liabilities distributed to each.
  • The earning capacities, educational levels, vocational skills, and employability of the parties and, when applicable, the time necessary for either party to acquire sufficient education or training to enable such party to find appropriate employment.

In Pete Rose’s case, he’s going to be putting up evidence that his age and his physical and emotional condition should be given a lot of consideration by the court in determining alimony or the amount of alimony.

Double Play

The 17-time All-Star selection, three-time World Series champion and 1973 NL MVP is going for a double play. In addition to his physical condition, Rose added he’s lost around $550,000 in annual income over the past year, bringing his yearly earnings to $453,000.

Rose is attempting to block his wife from receiving spousal support or forcing him to cover legal fees related to the divorce, by proving his financial condition does not justify it.

The Cincinnati native was banned for life in 1989 for betting on baseball. His attempt to gain reinstatement, and create a potential Hall of Fame path, was denied by commissioner Rob Manfred in 2015.

Rose was enshrined in the Reds Hall of Fame in 2016.

The Bleacher Report article is here.

 

Alimony Modification

Florida law allows you to lower what you pay in alimony each month, increase your alimony payments, or terminate alimony payments altogether. A recent Florida case is an interesting example why alimony modification is a hot issue.

Alimony modification

Florida Alimony Modification

There are a few reasons why alimony can be modified. Dramatic changes in health, inability to go back to work (due to disability, injury, etc.), substantial raise in pay, big gifts or lottery winnings, loss of job, and of course, retirement are the major forces behind alimony modification.

I’ve written about alimony modification before. In Florida, to modify alimony, the payor has to show three fundamental things: a substantial change in circumstances, the change was not contemplated at the time of the final judgment of dissolution, and that the change is sufficient, material, involuntary and permanent in nature.

The Supreme Court of Florida has addressed the impact of retirement on support obligations in Florida. To determine whether a voluntary retirement is reasonable, courts must consider, in part, the payor’s age, health, and motivation for retirement, the type of work, and the age at which others engaged in that line of work normally retire.

In Florida there’s been a debate about whether these reasons for modifying alimony have to be “unanticipated” or can they be reasons everyone knew about. That dispute was recently settled here.

Retirement Accounts

In a recent Florida case, the trial judge and the spouses did not take into consideration the eventual income that the former wife would receive from her retirement and annuity accounts without penalty, once she reached retirement age when they drafted their settlement agreement more than 10 years ago.

Her former husband asked the court for an alimony modification – even though he had not retired and had the ability to pay the required alimony – because the former wife’s retirement accounts had appreciated, and she had reached the age of 59 ½, so she could take distributions without penalty.

The family court judge agreed to grant an alimony modification, and the former wife appealed. The former wife argued that her ability to access the retirement accounts without penalty was not an unanticipated change in circumstances, and alimony may not be modified in Florida for anticipated changes in circumstances.

The appellate court, agreed with the former husband, and sustained the alimony modification. Given that their agreement was silent as to what would happen once the former wife could access the funds in retirement accounts, the retirement accounts had not been taken into consideration to determine the former wife’s income.

The appellate decision is here.

 

The Alimony Race

Yet another news outlet is reporting on the 2018 Alimony Race. NPR weighs in on why people are rushing to finalize divorces this year: so they can deduct alimony payments before the new tax law kicks in.

alimony race

On Your Mark

As NPR reports, divorce lawyers and accountants have been advising many of their wealthier clients to hurry up and get divorced, like, now or at least before the end of the year because under the new tax law starting in 2019, a generous tax break for alimony payments will be gone.

The New York Times’, Jim Tankersley, who covers tax and economics stories, had a few things to say:

TANKERSLEY: So right now, if you get divorced – let’s say you’re a husband who is paying alimony to your ex-wife. You can deduct that, if you so agree with your spouse in the divorce settlement, from your taxes. But what’s going to happen is you won’t be able to anymore.

CHANG: OK, so spouses who will be on the hook for alimony payments will be eager to get their divorce settlements finalized this year but also, I can imagine, spouses who will be receiving the alimony payments because I would think that my soon-to-be ex would have more of a reason to give me more alimony if he or she gets a bigger deduction out of it this year.

TANKERSLEY: Yes, but it affects different couples differently. For couples who make essentially the same amount of money, if they’re in the same tax bracket, this is just an accounting shift. The same total amount of money changes hands.

TANKERSLEY: But for couples who make different amounts of money and are in different tax brackets, what they basically got before was a subsidy from the government for their divorce…

CHANG: What do you mean?

TANKERSLEY: …Because the higher-earning spouse was able to pass on income that would have been taxed at a really high rate but then instead was getting taxed at a low rate.

TANKERSLEY: So that difference between the tax rates was just free money from the government. Now that goes away. So, if you’re the husband, for example, who earned more and is paying that alimony to a wife, now you have to pay the taxes at the higher rate. That free money disappears, and so you are probably going to say to your ex-wife, sorry, there’s no more money; I’m not going to give you even more than I was originally thinking I was going to have to pay. And so, you the ex-wife end up with less money overall. And in between, the government gets more money.

CHANG: And I can imagine most couples that have severely disparate incomes – it’s usually the woman who earns less. So, this tax law change will probably have women bearing most of the cost.

TANKERSLEY: That’s what divorce lawyers and tax professionals and financial planners have been telling me – is that, yeah, it’s largely women who receive alimony. And particularly with wealthy couples, it’s largely women who leave the labor force to take care of kids or for whatever reason. And women earn less in the economy for the same work than men do. This is a potentially big loss for women…

Why it Matters

Spouses negotiating alimony payments may try to pay less when the change takes effect because there will be no tax savings.

The deduction is a big deal to couples negotiating their divorce because if someone who earns, say, $250,000 agrees to pay $4,000 per month in alimony, it really costs the person about $3,000 after taking the deduction into account.

Without the break, many people will agree to pay only what would have been their after-tax amount. It is feared that more couples will end up fighting in court because they won’t be able to agree on alimony.

2019 Deadline

The alimony deduction repeal doesn’t take effect immediately and won’t kick in until 2019. That is why lawyers are advising clients to file for divorce now.

However, meeting the 2019 deadline won’t be easy.

Some states have mandatory “cooling-off” periods, others states have residency requirements. So, you can’t just file for a divorce today, and expect that you’re going to be divorced tomorrow.

The NPR interview is here.

 

Alimony for Him

Score another win for the women’s rights movement, but I’m guessing it’s not a win women will celebrate. In a surprise twist in the age of #equalpay, more women in divorce are having to pay alimony to their ex-husbands.

Hear Me Roar!

As MarketWatch reports, an increasing number of women are paying alimony and child support when their marriages break up, according to a recent survey by the American Academy of Matrimonial Lawyers.

Some 54% of the attorneys surveyed have seen an increase in women paying child support in the last three years, and 45% noticed an uptick in women paying alimony.

Despite complaints about the women’s pay gap, the trend of women paying alimony is being seen as a sign of women’s growing earning power. But experience is also showing that having to pay a man alimony is a bitter pill to swallow for women.

Florida Alimony

I’ve written about alimony, and alimony reform in Florida, many times. In every dissolution of marriage case, the court can grant alimony to either party – husband or wife.

Not many people realize there are several types of alimony in Florida: bridge-the-gap, rehabilitative, durational, or permanent alimony.

Florida courts can also award a combination of alimony types in a divorce. Alimony awards are normally paid in periodic payments, but sometimes the payments can be in a lump sum or both lump sum and periodic payments.

In determining whether to award alimony or not, the court has to first make a determination as to whether a wife or a husband, has an actual need for alimony, and whether the other party has the ability to pay alimony.

Once a court determines there is a need and ability to pay alimony, it has to decide the proper type and amount of alimony. In doing so, the court considers several factors, some of which can include:

  • The standard of living established during the marriage.
  • The duration of the marriage.
  • The age and the physical and emotional condition of each party.
  • The financial resources of each party, including the nonmarital and the marital assets and liabilities distributed to each.
  • The earning capacities, educational levels, vocational skills, and employability of the parties and, when applicable, the time necessary for either party to acquire sufficient education or training to enable such party to find appropriate.

But, the gender of the recipient is not a statutory basis for granting or denying alimony. Courts are supposed to be blind to gender in alimony awards.

The Future is Female!

Many women, no matter how educated, how professional, how modern they are, are surprised to learn that they might have to pay alimony. In the past, maybe mom was a kindergarten teacher and dad was working on Wall Street. For example:

  • In 1960, just 11% of households with children under 18 had mothers who were the breadwinner.
  • In 2013, moms were the primary provider in a record 40% of families, a 2013 Pew Research Center report found.
  • Some 31.4% of single dads who have custody of their kids received spousal support in 2016, and 52.3% of moms did.

The average amount of child support was $5,774 per year, or about $329 a month, but only 68.5% of that money was actually received, according to Census data.

Equality Includes Both Genders!

Paying alimony is something Sarah Gilbert never thought she would have to do, but the 44-year-old mom of three boys now sends $349 a month to her ex-husband. The Portland, Ore. resident says the experience has made her never want to get married again, even though she’s now in a happy relationship.

Her husband was a stockbroker when they first met, then he left the financial world to join the U.S. Army. After the military, he struggled to find work and was unemployed when they split. She was shocked when a judge gave her ex-husband primary custody and ordered Gilbert to pay monthly support.

The jaw dropped out of my mouth. I literally could not believe it. Had I been working a corporate job, I would have expected to pay spousal support to him, but I was a tour guide.

As a defense to paying alimony, working women going through a divorce will sometimes argue that their husbands are underemployed and could have earned much more than if he worked harder.

But the reality is, if during the course of the marriage, you and your husband agreed he’d earn less, work less, and you took on the role of the primary breadwinner, you’re going to pay that support.

The MarketWatch article is here.