Tag: Florida Alimony Reform

Florida Alimony Reform Sausage

Posted by Ron Kauffman on

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.

 

New Alimony Penalty

Posted by Ron Kauffman on

The GOP proposed tax plan has something for everyone. Including a huge surprise for divorcing couples: a tax penalty for divorce. The new law may dramatically change how we treat alimony for taxes, and whether your case will settle.

As Business Insider reports, the tax bill released last week could drastically change the tax treatment of alimony. Currently, alimony is tax-deductible for the paying spouse and taxable to the receiving spouse.

But if you get divorced after the plan is enacted, that would change: Alimony would be paid out of after-tax dollars and would be tax-free to the recipient.

This change would tend to increase the total amount of tax paid by divorced couples, since the ex-spouse who pays alimony is typically the one with the higher income and who faces a higher tax bracket.

Florida Alimony

In Florida a court can grant alimony to either party. There are different types of alimony a court can order: bridge-the-gap, rehabilitative, durational, or permanent, or any combination of these forms of alimony. In any award of alimony, the court may order periodic payments or payments in lump sum or both.

The court can even consider the adultery of either spouse and the circumstances in determining the amount of alimony, if any, to be awarded.

But the very first finding the court has to make in determining whether to award alimony is whether either party has an actual need for alimony or maintenance and whether either party has the ability to pay alimony or maintenance.

If so, the court must consider all relevant factors, including, the standard of living established during the marriage; the duration of the marriage, the age and the physical and emotional condition of each party, and the financial resources of each party, among other factors.

Alimony Tax Reform

I have written about alimony and taxes, and alimony reform proposals for many years. This time the proposal comes from Congress, no the Florida Legislature.

All told, the proposed change under the tax proposal would lead to the federal government collecting an additional $8.3 billion in taxes from divorced couples over the next 10 years, according to the bill summary.

Arguably, imposing such a substantial tax penalty on divorce could encourage people to stick it out and make their marriages work. But it could also financially trap people in unhappy marriages.

One argument for this change is that it would be easier for the IRS to administer, and IRS data shows that alimony sometimes shows up deducted on one ex-spouse’s return but is not reported as income by the other ex-spouse.

The Impact on Divorces

There are many ways to settle a divorce case and render a judgment. And, one of the most important facts to consider in any divorce is the tax deduction for alimony payments.

Overwhelmingly, divorces include some sort of alimony payment provision. The problem for the new tax bill is that if couples are less likely to reach an agreement on alimony, divorce proceedings could become more gridlocked, time consuming and expensive.

The Business Insider article is here.

 

Florida Alimony Reform: R.I.P.

Posted by Ron Kauffman on

Alimony reform in Florida will have to wait. With 35 days left in the Legislative session, the bills are not getting a hearing in either the House or the Senate, meaning the alimony reform bills will likely die in committee.

Florida Alimony

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. 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 also 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. The underlying goal is to get you into a position where you can take care of expenses without assistance.

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. However, a court has to find that there is no other form of alimony that would be fair and reasonable.

Although people often think of alimony as paid on a monthly basis, it can be awarded in a lump sum or be a combination of the two. In making a determination of whether or not to award alimony, the court may consider non-monetary factors.

Alimony Reform

Alimony reform is a nationwide phenomenon. A few states have already limited alimony, especially in cases where the marriage is less than 20 years.

Florida is not alone in moving for alimony reform. Currently, there are two bills in Florida trying to be passed to amend our alimony statute. However, many state bills, like Florida’s, are in progress, or are constantly evolving.

Unlike child support, which is common when a divorcing couple has kids, alimony awards have always been very rare, going from about 25% of cases in the 1960s to about 10% today. In one study of Wisconsin cases, it was only 8.6%.

Florida’s Alimony Reform Bill

This year’s bills would have provided judges with a set of guidelines for calculating alimony, and would also have provided judges and lawyers reasons to deviate from the proposed alimony guidelines in special cases.

I wrote about the failure of the alimony reform bills before. First, in 2015, when the Florida House of Representatives made a surprising end of their session, killing all bills.

Last year, Governor Scott vetoed a similar bill, but last year’s bill had a major difference. Last year’s bill added a provision that made equal timesharing a presumption in every case. Because of the equal timesharing presumption, the governor vetoed last year’s bill.

Withering on the Vine

For people who oppose alimony reform, there is good news: the bills are dead for the year. Sen. Kathleen Passidomo, the Naples Republican who’s carrying the Senate version (SB 412), this week said the chair of its first committee of reference refused to hear the alimony bill.

“Chairman Garcia determined that he was not interested in hearing it and I respect that decision,” Passidomo said. “I don’t think leadership weighed in on it.”

Sen. Passidomo also noted that the House version of the bill (HB 283), sponsored by Lakeland Republican state Rep. Colleen Burton, has also not gotten a hearing. Given that the House subcommittees are wrapping up work this week, that virtually dooms the legislation there.

The Florida Politics article is available here.

 

Florida Alimony Reform 2016: R.I.P.

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Alimony on Monday, April 18, 2016.

Governor Scott vetoed the single most contentious bill from the 2016 Legislature last week: the alimony and equal time-sharing reform bill. What’s it mean?

As the Miami Herald reports, Scott’s veto ended weeks of suspense and intense lobbying campaigns on both sides during which more than 11,000 calls and e-mails bombarded his office, with supporters ahead by a 4-1 margin.

I wrote about the failure of the alimony reform bill and equal timesharing provision last year, when the Florida House of Representatives made a surprising end of their session, killing all bills. This year, the surprise came from the Governor’s office!

Scott, who like many of his constituents have experienced divorce in his own family, delivered a veto message with an unusually personal tone.

“As a husband, father and grandfather, I understand the importance of family and the sensitivity and passion that comes with the subject of family law,” Scott’s veto message said. “As such, we should be judicious and carefully consider the long-term and real-life repercussions on Florida families.”

He said he was troubled by a provision in the bill (SB 668) that would require judges to begin divorce proceedings with a premise that both parents are entitled to approximately equal time with their children.

Scott said that would put “the wants of a parent before the child’s best interest by creating a premise of equal time-sharing,” a decision that he said should be left to judges.

Though emotionally divisive, the bill had broad support in the Legislature, passing the House by a comfortable 74-38 margin and the Senate by a 24-14 vote in March.

“At this point, it is unclear what future family law reform legislation the governor may find acceptable,” Lee said in a statement. “[The] veto message is vague and does nothing to further illuminate the governor’s concerns … [It)]focuses exclusively on potential outcomes without giving reasons for how the legislation could actually result in those outcomes.”

The Representative most responsible for merging the alimony and timesharing provisions was Representative Ritch Workman. On Friday he admitted that his decision to merge alimony and child custody provisions in one bill was the wrong strategy.

“The governor’s message is clear,” Workman said. “We must tackle each issue in family law separately rather than lumping them all together.”

The Miami Herald article is here.

Florida Alimony Reform & Working Women

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By The Law Offices of Ronald H. Kauffman of Ronald H. Kauffman, P.A. posted in Alimony on Monday, December 7, 2015.

Alimony reform is a nationwide phenomenon. If alimony reform comes to Florida, it may be too late for a 65-year-old woman ordered to pay her ex-husband $7,000 a month.

Currently, there are a few bills Florida has tried to pass to amend our alimony statute. I’ve written before about the previous attempts, including the current Senate Bill 250.

But Florida is not new. A few states have already limited alimony judgments, especially in cases where the marriage is less than 20 years. However, many state bills, like Florida’s, are in progress, or are constantly evolving.

As Time magazine explains:

Alimony, otherwise known as spousal support or maintenance, is an ongoing payment by the higher-earning spouse to the lower-earning one. It has changed and shifted over the 40 years since the Supreme Court ruled that it had to be applied equally to both genders.

Yet it is still heavily weighted toward men paying women. Only 3% of around 400,000 alimony recipients are male, according to the 2010 census, up 0.5% since 2000. Recipients claimed $9.2 million in payments in 2013 on their tax returns.

Unlike child support, which is common when divorcing couple has kids, alimony awards have always been very rare, going from about 25% of cases in the 1960s to about 10% today, said Judith McMullen, a professor of law at Marquette University. In one study of Wisconsin cases, she found it was only 8.6%.

A more recent phenomenon is the notion of women paying the ex-husbands alimony for life. Now that women are paying alimony more often, they are getting involved in advocating for change.

“It’s unfair for men to pay it, and unfair for women to pay it. But women are much more outraged by it,” said Ken Neumann, a founder of the Academy of Professional Family Mediators.

Tanya Williams, who has been sending a check to her ex-husband for 13 years, is among those who do not understand the concept of “permanent” alimony – when one spouse pays the other indefinitely – and has joined the cause against it.

“There’s no other contract where the liability continues after the contract ends,” said the 52-year-old dentist who got divorced in Florida but now lives in Florida. “You can’t leave your job and say, ‘I still have a need so you have to continue to pay me.’ “

A few states, Massachusetts, Texas and Kansas, limit alimony to helping lower-earning spouses get back on their feet or get further education. The general consensus is that everyone should work, and the only individuals likely to get a longer-term award are those who are disabled or are in retirement.

In New York, for instance, new rules go into effect in January 2016 which further limit alimony based on the duration of the marriage. The rules also restrict the way you can project the future earnings of professionals like doctors.

The Time magazine article is here.