Category: Alimony

Florida Alimony Reform: A Global Perspective

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Monday, January 6, 2014.

In considering alimony reform in the US, and especially here in Florida, it is helpful to compare how alimony is awarded around the world. For instance, England has just been branded the divorce capital of the world precisely because judges there are free to award generous payments to former partners, a recent survey has shown.

The flexibility given to judges presiding over divorce proceedings in England and Wales means spouses are more likely to receive generous maintenance payments than in 13 other countries, the research finds.

The survey examined spousal maintenance payments in jurisdictions across Europe, the United States, South Africa and New Zealand. As the London Daily Mail reports:

London has gained a reputation for being the divorce capital of the world in recent years after a series of generous payouts to ex-wives. These have included:

– Ex-Beatle Sir Paul McCartney, who was ordered to pay Heather Mills £24.3m (a little over $39m) after four years of marriage

– Beverley Charman, former wife of John Charman, the insurance magnate, awarded £48m (about $79m);

– Michelle Young, former wife of Scot Young, a one-time fixer for Russian oligarchs who was recently awarded a £20m (almost $30m) lump sum after divorcing; and

– An unnamed Russian businessman, identified as M, was ordered to pay £38m (roughly $62m) to his ex-wife and transfer UK properties to her in a complex case involving tracing assets all over the world.

The survey also found:

– German courts use guidelines, which provide certainty in maintenance calculations.

– Cyprus, Germany and Switzerland, the length of time, or term, for maintenance can be strictly limited.

– France and Malta still consider as a question when considering alimony awards. In Malta, the right to alimony is forfeited if the recipient “caused the breakdown of the marriage for reasons of adultery, cruelty or grievous injury or desertion for two years or more without good cause”.

Miami is an international city, and when considering Florida’s alimony standards – and any need to change them – it is helpful to consider how our laws differ with other advanced countries.

Alimony Reform Update: Is Alimony Unconstitutional?

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Wednesday, December 18, 2013.

People don’t like paying alimony. I’m not being sarcastic. Alimony can be a tax deduction, so you could end up paying your Ex less support overall. But, the tax advantage is often outweighed by the perceived injustice; hence the move to reform alimony. A new reform front has opened in Connecticut, where four guys are trying to have alimony laws declared unconstitutional.

Florida’s alimony reform movement is different, and has focused on trying to amend the law in the legislature. Last year they tried to pass a bill eliminating permanent alimony, but Governor Scott vetoed it. They are trying again next session. The Connecticut battle is different.

According to Courthouse News Service, a nationwide news service for lawyers, four Connecticut ex-husbands are suing their governor to have alimony laws declared unconstitutional:

Alimony is an historical anachronism, a remnant from an earlier legal era when the rights of women vis-à-vis their husbands, and in society in general, were radically different than they are today.

Connecticut’s alimony scheme is unconstitutionally vague, giving no notice to citizens contemplating marriage or divorce what fate may befall them in a divorce proceeding. The Legislature, by failing among other things even to identify the purpose or aim or alimony, has delegated basic policy decisions to the judiciary without any meaningful guidance.

The Ex-Husbands claim that in no area of law other than family relations does Connecticut give a civil litigant the ability to use penal remedies to enforce a money judgment.

There is some precedent for calling alimony laws unconstitutional. The U.S. Supreme Court in Orr v. Orr declared Alabama’s alimony statute unconstitutional in 1979, because it only imposed alimony obligations on men not on women, violating the equal protection clause.

Alimony payments can be a good thing for a couple too. Alimony is treated differently than child support in our tax code. If you receive alimony due to a divorce, it is taxable and must be reported on your tax return. The alimony payer can also claim the alimony as a tax deduction, as long as the payments meet code requirements.

It is not uncommon to have child support payments reclassified as alimony – especially in high income earning families – so that the payee spouse gets more money in alimony, the payer spouse get a large tax deduction, and more money is available for everyone.

Although it seems counterintuitive, paying alimony can sometimes be in your financial best interest. Chipping away at this financial freedom for parents may be too much reform. Alimony reform is underway in many states, and Florida is one of them.

Alimony Reform: Introducing Alimony Guidelines

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Monday, November 18, 2013.

Reform is in the air. Florida legislators are already speaking about a new bill to modify alimony. But it is not just Florida reviewing its alimony laws, other states are in various stages of reviewing and amending their state laws too.

The most recent change is Colorado, where couples will face dramatic changes in the way alimony is considered after a new state law goes into effect on January 1st. According to the Denver Post:

“It’s groundbreaking legislation,” said Heidi Culbertson, director of client development at the Harris Law Firm, which specializes in family law. “For the first time, Colorado will have a formula for maintenance.”

It is part of a national alimony reform movement, with many state legislatures seeking to either limit or standardize spousal maintenance payments. In particular, the focus has been on the lack of consistency in maintenance orders, which resulted in perceptions of unfairness and the inability to predict outcomes.

Along with Florida, a number of states – like Maine, Texas, Pennsylvania, Oklahoma and New Jersey – have considered introducing alimony guidelines to calculate alimony the way all states use child support guidelines to calculate child support payments.

The Colorado law provides a formula for the calculation of alimony. Alimony is equal to 40% of the higher income party’s monthly adjusted gross income less 50% of the lower income party’s monthly adjusted gross income. There are exceptions, and there is a cap.

The new statute does not apply to families with joint income over $300,000. For those cases, courts will continue to weigh a number of discretionary factors, including the parties’ unique financial circumstances and the length of the marriage.

Interestingly, Colorado’s alimony guidelines are only advisory to the courts, a sort of starting point in deciding how much and for how long an alimony award should be. The judges still maintain discretion. This is very unlike child support, where the discretion of a trial court is mostly removed.

Alimony Reform . . . Again

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Tuesday, September 24, 2013.

Way, way, back in May of ’13, the Florida Legislature passed a major alimony overhaul bill, which was surprisingly vetoed by Governor Scott in a midnight session. Once again, the threat is returning. Another attempt is being made by Florida legislators to rewrite the state’s comprehensive divorce law.

Some other key changes being considered are:

  • Seeking a reduction in payments when divorcees retire.
  • Automatic payment cuts if an ex-spouse loses a job or takes a salary reduction.
  • Changing the way child custody is awarded.
  • How to calculate alimony.

As the Sun Sentinel reports

Though there have been minor changes over the years, critics say Florida law is antiquated and based on a time when most women stayed home to care for the family, giving up their earning potential. That has left some ex-spouses paying alimony for years and made it difficult for people to move on with their lives, plan for retirement and possibly re-marry.

The old and new bills addressed alimony and child custody:

In April, the Legislature passed legislation that would have ended permanent alimony, capped awards based on a person’s income and the length of the marriage, and let the ex-spouse petition to terminate or lower alimony payments upon retirement.

However, that bill had a crazy provision which allowed it to be applied retroactively to all prior judgments and agreements in Florida. While the law would have given relief for ex-spouses paying alimony – by allowing them to re-open their cases – every single contract and court order involving alimony could have been renegotiated or re-tried.

It would have been utter chaos.

Governor Scott vetoed that bill, saying the retroactivity provision “tampers with the settled economic expectations of many Floridians who have experienced divorce” and “could result in unfair, unanticipated results.”

This time around, legislators are removing the retroactivity clause from a revised bill that they expect lawmakers to consider in 2014:

while specifics are still being worked out, many of the vetoed bill’s other provisions to cap and otherwise limit future alimony payments likely will remain.

Last Spring’s vetoed legislation included language that automatically presumed timesharing would be split 50-50. That was a major problem for child advocates and family law attorneys.

Reformers says their main goals now are to end permanent alimony – basing duration of payments on the length of the marriage – and to make clear that if a paying spouse’s income drops in the years after a divorce settlement, the alimony payment should also be reduced.

Florida Alimony Changes: The Latest

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Monday, April 22, 2013.

alimony changes are on our horizon. As the Miami Herald reports, the Florida House adopted the Florida Senate’s version of the alimony reform bill, SB 718, and passed it overwhelmingly by a vote of 85 to 31. The bill will now go to Governor Rick Scott for his signature on its way to becoming law. The effective date of the new law, if signed by the Governor, will be July 1, 2013.

Remember, this law may be retroactive. That means that even if your divorce has been over for a few years, the new law could impact you. I have alimony paying clients who can’t wait to modify their alimony awards.

So, what are some of the changes in store for Floridians? Highlights of SB 718 include:

  • The “standard of living enjoyed during a marriage” factor in alimony is gone.
  • There will be percentage caps on a paying spouse’s income which can be awarded as alimony.
  • Permanent alimony is eliminated in Florida.
  • The court may not award alimony for longer than half the length of the marriage, unless need is established.
  • A court must reduce or end alimony if the receiving spouse is in a supportive relationship.
  • There are also a couple of non-alimony changes which were slipped into the bill:
  • Florida’s new public policy is that equal time-sharing for parents is in the best interests of the children.

The law creates formulas for calculating the marital portion of non-marital real estate. For instance, in some cases people have used their salary to pay down the mortgage on their pre-marital house. Does the other spouse get some interest in that non-marital property? If so, how much?

The text of Senate bill SB 718 can be read here.

Florida Alimony Changes: Update

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Wednesday, April 17, 2013.

Today is ANOTHER big day for Florida alimony changes. Last week I posted about the Florida Senate passing Senate bill (SB 718), which fundamentally changes alimony in Florida.

Yesterday the House adopted the Senate version of the bill, SB 718. Today, the Florida House bill, HB 231, is scheduled for its third reading and possible House floor vote. It is on today’s Special Session, April 18, 2013 at 10:30. You can watch all the legislative action here.

Coincidentally, the Wall Street Journal has a timely article about the big changes to Florida’s alimony laws, and looks at how other states, like Massachusetts and Michigan, are changing their laws too. Floridians should take note that this is not a movement unique to our state, but reflects societal changes across the country.

Florida is one of a growing number of states where proponents of alimony-law changes are making an aggressive push. A similar measure took effect in Massachusetts last year, and comparable bills are pending in New Jersey, Connecticut, Colorado and Oregon.

The proposals have triggered contentious debate, pitting payers who decry what they call unjust awards against family-law attorneys who say the measures are punitive to women.

Supporters say alimony laws in many states tether former spouses indefinitely and are outdated at a time when women make up 47% of the labor force. They also complain that judges have too much leeway to fashion awards, yielding wildly disparate judgments.

  • Briefly, the House bill (HB 231) does the following:
  • Revises factors to be considered in alimony awards;
  • Automatically terminates alimony in certain circumstances;
  • Requires the imputation of income in some cases;
  • May allow an offset of or other consideration of alimony in determining equitable distribution or child support;
  • Creates a presumption in favor of equal time-sharing by parents;
  • Allows for attorney fees if obligee unnecessarily seeks modification or termination;
  • Makes retirement age a reason to modify alimony.

Major News About Florida Alimony Changes

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Friday, April 5, 2013.

It looks like Florida alimony law will dramatically change again! The Florida Senate just passed Senate bill (SB 718), which makes drastic changes to Florida’s alimony statute. There is a similar bill floating around the Florida House floor. House bill (HB 231) passed easily in the House Judiciary Committee by a vote of 14 to 4, and will now go to the House floor later this month for a final vote. Once Governor Scott signs the bills into law, Florida Statutes and the way courts can award alimony will change dramatically.

Here are some of the big changes coming our way:

  • Courts must impute income to an unemployed spouse.
  • There would be a presumption against alimony for short-term marriages.
  • Permanent alimony is eliminated.
  • A court couldn’t award alimony for more than half the length of the marriage without clear and convincing evidence.
  • The retirement of the paying spouse would become a substantial change in circumstances.
  • Alimony must be reduced or terminated if the payee spouse is in a supportive relationship.
  • The new law would apply to all orders entered before the bill became law, so the bill itself would be grounds for modifying or terminating alimony.
  • The bill would create a presumption in favor of equal time-sharing.

As the Associated Press reports:

TALLAHASSEE, Fla. (AP) — The Florida Senate has passed a bill that would put an end to permanent alimony in the Sunshine State.

It’s the latest attempt by Florida lawmakers to set new guidelines for the emotional issue of spousal support after marriages dissolve. A similar bill died in the Legislature last year.

The version that cleared the Senate on a 29-11 vote Thursday would replace permanent alimony with spousal support that has a foreseeable end.

It also would make it harder to get alimony in short-term marriages.

The Florida House is considering similar legislation.

Florida Alimony Reform

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Wednesday, March 20, 2013.

alimony is up for debate again in Florida. This year though, the reforms are HUGE. The Florida Senate Bill is 718 and the Florida House bill is 231, and they are being debated in Tallahassee right now. You can read the Senate bill here. Some of the items in the new bills which are creating a stir are:

Factors for awarding alimony

  • The bill deletes the standard of living enjoyed during a marriage factor.
  • There would be a new presumption that both parties will have a reduced standard of living.
  • Courts must impute income to an unemployed spouse.

Amends Presumptions

  • The bill adds 3 years to each category of marriage (short, moderate and long).
  • There would be a presumption against alimony for short-term marriages.

Amends Alimony Types

  • Permanent periodic alimony is eliminated.
  • Alimony types would be prioritized, so that bridge-the-gap is considered first, then rehabilitative, lastly, durational alimony.
  • A court couldn’t award alimony for more than half the length of the marriage without clear and convincing evidence.
  • The bill limits the cases in which a court could award combinations of alimony.

Modifies Alimony Modifications

  • The retirement of the paying spouse would become a substantial change in circumstances.
  • Alimony would automatically terminate at normal retirement age.
  • Alimony must be reduced or terminated if the payee spouse is in a supportive relationship.
  • The new law would apply to all orders entered before the bill became law, so the bill itself would be grounds for modifying or terminating alimony.

Timesharing

  • The bill would create a presumption in favor of equal time-sharing.

While some people support the Bills, some people hate it. The Family Law Section of the Florida Bar, for instance, is voicing strong opposition to this legislation, and pointing out some little-understood facts about alimony.

  • Florida courts do not routinely award permanent alimony.
  • Florida courts can ONLY award permanent alimony after making findings of fact that no other form of alimony is fair and reasonable.
  • Permanent alimony awards are almost always in long-term marriages.
  • Permanent alimony is always modifiable.
  • Florida courts cannot order permanent non-modifiable alimony.

Stay tuned.

More Women Are Paying Alimony

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On behalf of Ronald H. Kauffman, P.A. posted in Alimony on Thursday, July 12, 2012.

The tables are turning on alimony and child support. As more women climb higher up the career ladder, and outpace their husbands in salary and title, they are finding that they are the ones having to support their ex-spouses after the divorce.

Many women are finding that breaking through the glass ceiling comes with financial responsibilities. Just as many of my male clients grumble about paying alimony to their former wives, more and more of my female clients arrive at our consultations worried about having to support their soon-to-be former husbands.

Whether you are concerned about your ability to pay, or interested in knowing whether your needs justify receiving support, you should know that Florida’s alimony statute has recently (and dramatically) changed. Everyone is concerned about the recent changes to the law, and the looming threats to amend the statute in upcoming legislative sessions in the years to come.

Reuters reports:

“As women climb higher up the career ladder and outpace their exes in salary, when love goes wrong and marriages break up they are being compelled to contribute to the livelihood of their former spouses.

More than half, 56 percent, of divorce lawyers across the United States have seen an increase in mothers paying child support in the last three years and 47 percent have noted a hike in the number of women paying alimony, according to the American Academy of Matrimonial Lawyers.”