In Florida divorce proceedings, courts are tasked with making equitable decisions on financial issues, including child support, life insurance to secure that support, and the division of marital liabilities. However, these determinations must be grounded in both statutory requirements and factual findings. A recent Florida decision highlights the importance of careful judicial analysis when imposing child support and related obligations. If you are navigating a divorce involving financial complexities, a Miami family law attorney can ensure your interests are protected throughout the proceedings.
History of the Case
It is reported that the parties were married for nine years and had two minor children before the husband initiated dissolution proceedings. The case proceeded to a three-day final hearing in April 2023, during which the husband represented himself. The trial court entered a final judgment addressing child support, life insurance to secure support, and the classification of a substantial employment-related financial obligation.
Allegedly, the trial court calculated child support based on a 70/30 timesharing split in favor of the wife. It is reported, however, that this allocation did not match the timesharing schedule outlined in the parties’ Parenting Plan, which granted the husband five overnights and the wife nine overnights every two weeks. This schedule more closely resembles a 65/35 division rather than the 70/30 ratio used in the court’s child support calculation.
It is further reported that the trial court required the husband to maintain life insurance to secure the child support obligation. However, the court did not make any findings as to the necessity, cost, or availability of such insurance, nor did it explain whether any special circumstances justified the imposition of this requirement.
Additionally, the husband contested the court’s treatment of a promissory note related to a signing bonus he received during the marriage. It is reported that the husband was employed by Morgan Stanley and, upon hiring, received an upfront bonus conditioned on signing a promissory note to repay the funds over nine years. In a corresponding agreement, the firm reimbursed him annually through larger bonus payments, making the arrangement effectively cost-neutral while he remained employed. The husband appealed.
Grounds for Vacating Family Court Orders
On appeal, the court affirmed in part and reversed in part. As to child support, the court held that the trial court erred in applying a 70/30 timesharing ratio that was not supported by the actual Parenting Plan. The court directed that child support be recalculated based on the actual overnight allocations, including holidays and summer schedules, in accordance with Florida’s child support guidelines.
Regarding the life insurance provision, the court found that the trial court failed to make the necessary factual findings required by Florida Statutes section 61.13(1)(c). The statute allows a court to require life insurance to secure a child support award only “to the extent necessary to protect” that award. As interpreted by prior cases, the court must consider the need, cost, and financial impact of life insurance, and identify special circumstances such as a supported spouse’s limited earning capacity or minor children residing in the home. Without such findings, the appellate court reversed the life insurance requirement and remanded for reconsideration.
Finally, the court addressed the classification of the promissory note related to the husband’s signing bonus. It affirmed the trial court’s decision to treat the note as a contingent liability with no current value, finding that the obligation to repay the bonus was functionally offset by the annual reimbursements the husband continued to receive. Because the reimbursement effectively canceled out the liability while the husband remained employed, the trial court did not err in declining to assign a monetary value to the note as a marital liability.
Consult an Experienced Miami Divorce Attorney Today
Mistakes in calculating timesharing or imposing support-related obligations can significantly impact your financial future. If you have questions regarding your rights in a dissolution proceeding, it is smart to consult an attorney. At The Law Offices of Sandy T. Fox, P.A., our experienced Miami divorce attorneys can provide you with strategic advocacy in all aspects of divorce, from equitable distribution to support enforcement and modification. Contact us at 800-596-0579 or online to schedule a confidential consultation. We represent clients in Miami and throughout South Florida.