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What Matters When Calculating Alimony?

Oct 31, 2022 | Divorce

Florida Alimony

Effective July 1, 2023, Florida law with respect to alimony was substantially overhauled. There are now five rather than six different types of alimony. The new law did away with permanent periodic alimony. Each of the remaining types of alimony serves a certain, and sometimes overlapping, purpose. An alimony award is heavily dependent on the length of the marriage, which can be short-term, moderate-term, or long-term.

Short-term = Less than 10 years
Moderate-term = 10 to 20 years
Long-term = 20+ years

Types of Alimony

Temporary Alimony: This is alimony that is awarded during the divorce proceeding, to allow a spouse to maintain him or herself while the case is pending. Temporary alimony, as the name suggests, will terminate upon entry of the final judgment of divorce. It may be modified during the divorce proceeding.

Rehabilitative Alimony: This is alimony that is awarded to allow a spouse to pursue educational or other training in order to become self-sufficient. Rehabilitative alimony is awarded with a specific plan for the spouse to obtain the training needed for a specific purpose. For example, if the spouse intends to go to nursing school to obtain a 4-year B.S. degree in nursing with the goal of eventually working as a Registered Nurse, then the rehabilitative alimony plan would specify that the program will last 4 years, will cost X dollars in tuition and other costs, and that the spouse will need X months after graduating to obtain a suitable position. Rehabilitative alimony is limited to 5 years.

Sarasota-divorce-attorney-calculating-alimony

Bridge-the-Gap Alimony: This type of alimony is designed to help the payee spouse “bridge-the-gap” from married to single life. It is also known as transitional alimony, and will, for example, provide assistance with foreseeable bills and expenses associated with starting one’s new life without a spouse. This type of alimony cannot exceed 2 years and is not modifiable.

Durational Alimony: Under the new statute, durational alimony is available in marriages that lasted 3 years or longer. Upon a proper showing a spouse may be awarded durational alimony in the amount of his or her reasonable need or 35% of the difference between the parties’ net incomes – whichever is less. The durational alimony can be awarded for a period of time not to exceed 50% of the length of the marriage if it was short term, 65% of the length of the marriage if it was moderate term, and 75% the length of the marriage if it was long term. In rare instances, alimony may be extended beyond the statutory maximum. The party seeking the extension will need to establish extraordinary circumstances. The amount of the alimony award may be modified, but not the duration. It terminates upon the death of either party or remarriage of the party receiving the alimony.

Lump Sum Alimony: All the above types of alimony involve periodic payments being made to a payee spouse. In lieu of this, the Court may award an alimony award as a lump sum payment to the payee spouse.

Alimony Factors

In determining whether an award of alimony is appropriate, a Florida court will consider several factors, including:

Standard of Living: The Court will consider the standard of living that the parties maintained during the marriage and, now, must also look at the anticipated needs and necessities of life of each party post-dissolution.

Duration of the Marriage: Was the marriage short-term, moderate-term, or long-term?

Age and Physical and Emotional Condition of Each Party: Are both spouses in their prime and able to work? Is one spouse disabled and unable to enter the workforce?  After the amendments to the alimony statute, the Court is to consider also the mental condition of each party and whether there is any physical of mental disability which will impact his or her ability to provide for his or her own needs.

Financial Resources of Each Party: This includes each party’s nonmarital assets and the marital assets and liabilities that were distributed to each party in the divorce.

Earning Capacities, Educational Levels, Vocational Skills, and Employability of the Parties: Is one spouse well-established in a career as a CEO, while the other spouse has committed his or her life during the marriage to caring for the parties’ children? Under the amended statute, the Court will look to the income of each party without being obliged to consider the liabilities of each party. Also under the amended statute, the Court must consider the employability of each party and how long it might take an unemployed spouse to gain the skills or education necessary to have a way to support him or herself or to contribute to his or her own support.

Contribution of Each Party to the Marriage: Did one spouse work as a stay-at-home parent to support the other spouse in pursuing educational and career goals? Considered along with the above factor, this is a weighty consideration in a permanent alimony case.

Responsibilities of Each Party Regarding Minor Children in Common: Do the parties have any children under the age of 18 or any adult children with special needs? Under the amended statute, the Court is to give special consideration to the need to care for a child with a physical of mental disability.

Tax Treatment of an Alimony Award: Under current law, alimony does not constitute taxable income to a spouse, nor is the paying spouse able to deduct the alimony payments.

All Sources of Income Available to Either Party: The Court will consider all sources of income, including investment accounts, trust assets, and any other assets held by either party.

Any Other Factor: Florida family law courts are courts of equity. As such, this is a catch-all factor that allows the Court to consider anything necessary to ensure fairness and justice is achieved between the parties. Under the amended statute, a Court must specify what constitutes another factor under this subsection, such as a supportive relationship or an impending retirement.

Sarasota Divorce Attorney

If you are filing for divorce in Florida or if you have been served with divorce pleadings, the attorneys at Loftus Law are ready to assist you. The Loftus Law attorneys are compassionate yet aggressive when necessary to protect their clients’ rights and ensure that they get what they are entitled to. The Loftus Law team understands that a divorce is often difficult, emotional, and confusing, and they are here to help you navigate your way through the process. Contact Loftus Law to schedule your consultation, where the attorney will take the time necessary to listen, answer your questions, and explain your legal options.