Tag: Alimony Reform Update

Alimony Reform . . . In the Big Apple

By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Alimony on Monday, July 6, 2015.

Alimony reform is not just a Florida issue, it’s nation-wide. Recently, New York passed sweeping revisions to its alimony laws. Florida’s dueling alimony reform bills died this year. Is New York a sign of what’s to come?

As the Wall Street Journal reports, the New York Senate’s action came five years after the state adopted legislation on alimony that eventually drew criticism from a wide range of bar associations and matrimonial lawyers.

The law introduces a formula to determine temporary alimony that is paid out between the filing of a divorce and its completion. It was intended to protect low-income New Yorkers by providing predictability and consistency in awards.

It worked well for that group, but drew increasing opposition because it applied to people making more than $500,000 a year. Critics said it failed to account for complicated financial situations, and there were extreme cases of spouses being asked to pay more in child support, alimony and other expenses than their monthly incomes.

The new bill preserves the temporary maintenance guidelines and extends them to post-divorce alimony, but now the formula will apply to income up to $175,000, down from $543,000.

It also provides judges with suggested ranges for the length of alimony awards, including proposing 7 to 10 years for marriages lasting 20 years, and changes the formula if child support is involved.

Formerly, money was awarded for a percentage of the lifetime value of a license or professional degree earned during the marriage. The money was awarded regardless of whether the person ended up switching careers or suffered an injury that prevented him or her from working.

I’ve written extensively on Florida’s efforts to adopt new alimony laws. The most recent effort, after a year of wheeling-and-dealing by lawyers, lawmakers and others, died when the Senate refused to take up the House’s version of the bill.

The Wall Street Journal article is here.

Florida Alimony Reform and Equal Timesharing (Custody)

By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Alimony on Friday, April 24, 2015.

There are two bills in the Florida House and Senate to drastically change alimony. This week, both the House and Senate bills passed their remaining committees and are ready for floor votes. So why write about custody?

I’ve written about equal timesharing before. The reason for the latest update is that both alimony bills have strong language about how judges must award custody rights to parents. But each is slightly different fro each other.

The bills have different language, but both will dramatically change the laws of custody in Florida if passed and signed by the governor.

Senate Bill 1248

Approximately equal time-sharing with a minor child by both parents is presumed to be in the best interest of the child.”

Senate bill 1248 creates a presumption that approximately equal timesharing with a child by both parents is in the child’s best interest. However, a court can establish an unequal timesharing arrangement if it wants.

The judge would have to show an unequal timesharing arrangement is best, and make written findings as to why. The Senate bill has an October 1, 2015 effective date.

House Bill 943

It is further the public policy of this state that a child’s interests are ordinarily best served by the equal and active involvement of both parents in the child’s life. Absent good cause, it is in the minor child’s best interests to have substantial time sharing with both parents.

The House bill started as strictly an alimony bill. However, this week Rep. Burton added the amendment quoted above, and the timesharing provision is different from the Senate version.

First, the bill specifically sets forth a new public policy. It is not common for Florida public policy to be specifically expressed in the statute. What is rarer is that this adds to a previous public policy statement about timesharing already in the statute:

It is the public policy of this state that each minor child has frequent and continuing contact with both parents after the parents separate or the marriage of the parties is dissolved and to encourage parents to share the rights and responsibilities, and joys, of childrearing

Second, and unlike the Senate version, the bill does not require “equal timesharing” at all. What it does is codify what I think many judges presume: it allows willing parents to spend a substantial amount of time with their children after divorce and separation.

There is only a few more days left in the regular session of the Legislature this year. Anyone involved in a pending action, seeking to establish a new alimony or parenting plan case, or modify an existing one, should keep their eyes on Tallahassee.

The House Bill can be found here.

Alimony Reform & A Presumption of Equal Timesharing

By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Timesharing/Visitation on Thursday, April 16, 2015.

Equal timesharing and alimony reform are back again, as the Florida Legislature is in session. Competing House and Senate bills are being circulated which dramatically change alimony and may create a presumption of equal timesharing (custody).

I’ve written about the Legislature’s past attempts to reform alimony before. Senate Bill 1248 is the latest attempt to do away with permanent alimony, and create a set of guideline to automatically calculate the amount of alimony awardable, and the term for how many years alimony would last.

Both bills reform alimony. With respect to alimony amounts, the bill establishes presumptive alimony ranges. The presumptive amounts are determined by formulas based on the difference between the parties’ gross incomes and the length of the marriage. The bill also limits the duration of alimony to 25% or 75 % of the length of the marriage.

However, unlike the House bill discussed in earlier posts, the Senate bill adds something different: equal timesharing for moms and dads:

“Approximately equal time-sharing with a minor child by both parents is presumed to be in the best interest of the child.”

The bill establishes a presumption that approximately equal timesharing with a child by both parents is in the child’s best interest. However, a court can order unequal timesharing if unequal timesharing is supported by written findings of fact.

Fifty-fifty timesharing between parents sounds like a great idea, and there are strong arguments for and against a presumption of equal timesharing. Here are some of the argument for and against a presumption in favor of equal timesharing:

Pro

Each year, cases are tied up in court to establish a right to see their children that they would automatically have if they were married.

An equal time presumption promote Florida’s existing policy of frequent contact after divorce.

Equal timesharing puts the burden on the parent opposing equal timesharing, changing the dynamics of custody litigation.

Equal timesharing is consistent with Florida’s existing no-fault concept.

Con

Requiring every family to have equal timesharing is like requiring every family to wear a size 4 shoe. Not every family fits.

The presumption creates a uniform rule where the flexibility of ‘the best interest of the child’ is needed.

Requires courts to focus on QUANTITY of time instead of QUALITY of time.

Requires courts to focus on what’s best for the parents instead of what’s in the child’s best interest.

With the 2015 Legislative session roaring up north, and competing bills in the House and Senate, this is a very interesting issue to keep your eye on.

Florida Alimony Reform Update

By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Alimony on Wednesday, March 11, 2015.

With the Legislature in session, alimony reform in Florida is on the top of everyone’s minds. Last week I pointed out the heart of the new statute, alimony guidelines. But there are some other new updates in the bill.

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Income and Potential Income

Under the current statute, income is not well defined. Under the proposed law, there will be an extensive list of what income is for alimony.

There is also a new item: “potential income”. Potential income is income which could be earned using your best efforts. In other words, if you were employed before, potential income is the income you could earn by working at a locally available, full-time job commensurate with your education, training, and experience. If you have investments, it would be the reasonably expected return from your investments.

Underemployed

Are you underemployed? Under the new statute, “underemployed” means you are not working full-time in a position which is appropriate, based upon your educational training and experience, and available near your residence.

Standard of Living

Standard of living was historically a major factor in awarding alimony. But under the proposed statute, the standard of living for two households will be presumed to be lower than a single-married household, and that judges must consider that fact.

Absolute Maximum Alimony Payment

The bill would limit the total alimony and child support payment by prohibiting the amount from exceeding more than 55% of the payor’s net income. Under the current statute there is no alimony maximum.

New Spouses

I’ve written extensively about the impact of a new spouse on discovery. Can you subpoena a new husband’s tax returns or take his deposition?

The financial information of a new spouse is inadmissible, and may not be considered as a part of any modification action, unless a party is claiming that his or her income has decreased since the marriage.

Even then, the financial information of the new spouse is discoverable and admissible only to the extent necessary to establish whether the party claiming that his or her income has decreased is diverting income or assets to the subsequent spouse that might otherwise be available for the payment of alimony.

Prevailing Party Attorneys’ Fees

The new bill requires the side that unnecessarily promotes or defends against an alimony modification to pay fees to the other side. This is popularly known as a “prevailing party” attorneys’ fee provision.

Besides the guidelines, which totally change the way alimony is decided in Florida, the new alimony reform bill contains a lot of new ideas and ways of deciding on the amount and term of alimony. The bill is something to follow.

House bill 943 can be read here.

March Madness: Florida Alimony Reform Update

By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Alimony on Friday, March 6, 2015.

March starts the new legislative session. For alimony reform, a House bill has already been filed which changes alimony. And we’ll have an insulting new name for marriages, they’ll be called: Low End Marriages.

I’ve written about alimony reform before. Florida may be getting alimony guidelines, which may take some guess work out of alimony, but many will be unhappy with the amounts and length of alimony.

How much will your alimony be? The bill proposes two ways to calculate alimony: one for High End marriages, and one for Low End marriages. Whether your marriage is “high end” or “low end” depends upon how long it lasts.

If the marriage is more than 20 years long, than it’s a High End Marriage. If 20 years or less, it’s a Low End Marriage.

Alimony in Low End Marriages

The low end of the alimony amount range is a simple calculation: (0.0125 x the years of marriage) x the difference between the monthly gross incomes of the parties.

Ex) For a 20 year marriage, where the Husband and Wife have a $10,000/month difference in income, the presumptive alimony award would be $2,500/month.

Alimony in High End Marriages

The high end of the alimony amount range is calculated at a 2% of the term of the marriage: (0.020 x the years of marriage) x the difference between the monthly gross incomes of the parties

Ex) In a 21-year marriage, where the Husband and Wife have a $10,000/month difference in income, the presumptive alimony award would be $4,200/month.

How Long Will Alimony Last

How long will alimony last? That will also be a calculation too. If the marriage is Low End, the duration is 25% of the length of the marriage. If High End, the term would be 75% of the length.

Ex) For a 20 year marriage, the presumptive alimony term would be 5-years.

Ex) For a 21 year marriage, the presumptive alimony term would last 15.75 years.

If this passes, you’ve got to at least love Florida’s official new terms for marriages as “low end”. Really? Why not call them “Trailer Trash Marriages”?

This is not an opinion blog, but really, who thought THAT up? How much alimony is a judge likely to award in a “low end”, cheap marriage?

If the legislative intent was to insult the institution of marriage, officially calling them “low end” is a great way to do it.

There will likely be changes to the bill. Whatever its final version, alimony reform in Florida appears likely. I’ll have more to say on Florida Alimony Reform in other posts.

The House bill is available here.

Alimony Reform Update: Is Alimony Unconstitutional?

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.