Articles Posted in Alimony

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Last month, a Hillsborough County Circuit judge ordered the arrest of a successful Tampa area businessman, after he was found guilty of five counts of criminal contempt of court for failure to pay his child support and alimony obligations. The man reportedly failed to attend the contempt hearing where Judge Caroline Tesche sentenced him to almost six months in jail for repeatedly refusing to pay more than $6 million in alimony and child support.

The man’s ex-wife initiated divorce proceedings in 2009 and the former couple reached a final settlement agreement in July 2011. Although the couple has a 12-year-old son together, she stated her former husband has not supported them for several years. According to her attorney, the man now owes his ex-wife $10 million.

The man in this case is reportedly a decorated Vietnam veteran, a former president of a company, and previously ran a building materials business which allegedly reported profits of more than $4 million per month at its height. At one point, he reportedly owned a mansion and regularly drove several high end sports cars. Now, the man claims he is financially insolvent. In fact, he allegedly filed for bankruptcy just three days prior to the contempt hearing. Still, Judge Tesche believes the father has the ability to pay.

This man reportedly owns stock in several large companies as well as other assets. His attorney has argued that the man’s hands are tied as the former couple’s settlement agreement prohibits him from selling his stock in order to generate cash. He also claims the man is unable to liquidate any of his assets and lives off of loans and a small monthly Department of Veterans Affairs disability check.

According to the former wife, her ex-husband has the money and is merely hiding millions of dollars in assets from her. In November 2010, he spent more than two weeks in jail for refusing to produce documents during the couple’s divorce proceedings. When he filed for bankruptcy, the man reportedly estimated his assets as being in the range of $100 to $500 million and his liabilities at no more than $50 million. To further complicate the case, the Internal Revenue Service is also allegedly performing a criminal investigation into his affairs. His attorney has stated he is not aware of the man’s current location.

Each year many Florida residents find themselves in the midst of a less than amicable divorce. Understandably, the host of emotions associated with the end of a marriage can be overwhelming. The financial damage can oftentimes make a bad situation even worse. If you are contemplating divorce, you need an experienced family law attorney to help you protect your financial interests.
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Florida lawmakers are currently considering a bill which would end permanent alimony awards following divorce. If passed by the Florida Legislature, House Bill 549 would base an award of alimony on the length of the divorcing parties’ marriage. For example, a marriage which lasted for 12 years would be eligible for a maximum alimony award of 12 years. The bill would also cap awards based on the payer’s income and allow payments to cease upon the payer’s retirement.

Earlier this month, the state legislature heard testimony in favor of House Bill 549 from members of the Florida Alimony Reform Group. A member of the group, Hector Torres, has also urged legislators to allow previous awards of permanent alimony to be revisited by courts. According to Torres, the state’s laws are behind the times and it is unfair he must pay alimony until his death after a marriage which lasted only 14 years.

Although the bulk of divorces across the nation involve some sort of alimony award, the money is generally provided to assist a spouse as he or she works to become self-supporting. Today, several states are changing their alimony laws in response to the fact that more spouses work outside of the home. This fall, Massachusetts placed new limits on the length of time alimony may be awarded by courts and ended alimony payments when the payer reaches retirement or the payee begins residing with another partner. Florida recently amended state alimony laws to provide awards solely after marriages of long term duration. Permanent awards now also require a court determination stating no other alimony option is fair or reasonable given the parties’ situation. New Jersey is currently considering legislation to limit alimony awards as well.

In Florida, two requirements must exist before a court will award alimony. They include a need on the part of the payee and an ability to pay on the part of the alimony payor. The first requirement takes into account the distribution of marital assets combined with the parties’ standard of living prior to the end of the marriage. If the potential payee can maintain the same standard of living after all assets are distributed, a court likely will not award alimony.
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A bill filed before the Florida Legislature on November 2nd would prohibit judges presiding over a divorce from considering adultery when awarding alimony, place limits on the total amount and length of time alimony may be awarded, and allow divorce agreements in which alimony was awarded to be reopened and renegotiated. House Bill 549 would also terminate all alimony payments once the spouse ordered to pay reaches the age of retirement.

House Bill 549 was filed by Brevard County legislator Ritch Workman. Representative Workman reportedly filed the bill only eight days after his own divorce was finalized in Florida. Although alimony was reportedly not awarded in Workman’s divorce, the Melbourne legislator has stated he believes current Florida alimony laws are inequitable.

Alimony is a tool used by Florida courts to maintain each party’s standard of living after a divorce. Alimony is not awarded in all circumstances, however, as an award of alimony is contingent upon the financial needs of one spouse and the others ability to pay. Additionally, the length of the marriage also plays a factor in an alimony award.

House Bill 549 is part of a growing trend to reform alimony laws both in Florida and across the nation. Workman’s bill was modeled after similar legislation passed recently in Massachusetts. If the bill passes in Florida, its effects would be far-reaching. Even routine divorce settlements could be reopened and reexamined. Since filing House Bill 549, Representative Workman has stated specific portions, such as a cap on awards, should be removed.

The bill closely follows on the heels of recent amendments to the permanent alimony provisions of Florida Statute 61.08 which took effect on July 1, 2011. Permanent alimony is normally awarded to a spouse who is no longer capable of meeting basic financial needs after a long term marriage of more than 17 years. Permanent alimony may also be awarded at the discretion of a judge after a moderate or short-term marriage is dissolved. Since July 1st, Florida courts must now determine no other alimony award is “fair and reasonable under the circumstances,” when permanent alimony is awarded. For moderate-term marriages of 7-17 years, clear and convincing evidence permanent alimony is the appropriate award is now required.
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A legislator in Florida, Representative Ritch Workman, is attempting to repeal a state law which makes it illegal to cohabit with a party who is not a spouse. Specifically, “if any man or woman, not being married to each other, lewdly and lasciviously associate and cohabit together..they shall be guilty of a misdemeanor of the second degree”. This crime is currently punishable by 60 days in jail and a $500 fine.

Approximately 544,907 Floridians live in a relationship in violation of Florida law. This law is now viewed as both unenforceable and unrealistic. One advocate believes that there is a role for government to promote marriage instead of cohabitation. The rationale is that greater marriage rates have a lower likelihood of crime, less domestic violence and better educational results for children.

Individuals believe that there are governmental limitations in promoting marriage. Arresting individuals who live together is not realistic or fair. Many Floridians do not want to marry due to a prior Broward divorce which they experienced or lived through with their own parents.

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In Sootin v. Sootin, the former husband and former wife divorced in Miami-Dade in 1998. The former husband was obliged to pay the former wife permanent alimony. During 2008, the former husband sought to modify or terminate his alimony obligation. The former wife successfully moved to dismiss the petition since she now resided in Tennessee.

Next, the former husband moved to Tennessee and filed a petition to register and modify the divorce decree previously entered in Miami-Dade. After the former wife moved to dismiss the petition for a lack of subject matter jurisdiction in Tennessee, the Miami-Dade court, after consultation with the Tennessee Court, transfered the case to Tennessee. The former wife appealed this order.

In reversing the trial court’s transfer order, the Third District Court of Appeal held that the Miami divorce court erred in transferring the case to Tennessee. The court reasoned that Florida, under the Unified Interstate Family Support Act (hereinafter “UIFSA”), had continuing exclusive jurisdiction over the alimony order throughout the existence of the obligation.

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Divorce attorney’s in Miami, Coral Gables, Hallandale, Plantation and other South Florida cities are preparing for a statutory overhaul regarding legislative modifications to the statute governing alimony. One of the most significant changes is the codification of bridge-the-gap alimony.

Bridge-the-gap alimony assists a party in making the transition from being married to being single. It assists a party with identifiable short term financial needs. A marital and family law judge may not award bridge-the-gap alimony for a period in excess of 2 years. Bridge-the-gap alimony terminates upon the death of either party or upon remarriage of the party that receives alimony. Last but not least, bridge-the-gap alimony is non-modifiable in amount or duration.

Another important change to alimony relates to rehabilitative alimony. Rehabilitative alimony assists a party in redeveloping previous skills or credentials. It also helps a spouse acquire education, training or work experience necessary to develop employment skills. In the Final Judgment of Dissolution of Marriage, the court must detail a defined rehabilitative plan. A party may modify or terminate rehabilitative based upon a substantial change in circumstances or compliance with the rehabilitative plan.

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When a client meets with their Broward divorce lawyer, nine times out of ten they will ask if they will have to pay alimony or if they will receive alimony. Effective July 1, 2010, there will be significant revisions to Florida law governing alimony. The amendments apply to all initial awards and modifications of these awards entered prior to July 1, 2010. However, the statutory amendments will not serve as a basis to modify alimony awards or change the amount or length of alimony awards entered before July 1, 2010.

The Florida marital and family court will now consider three additional statutory factors when awarding alimony. First, the court will consider each party’s responsibilities for children of the marriage. Next, the court will consider the tax consequence of the alimony award and whether all or a portion of the award should be nontaxable and nondeductible. Finally, your Fort Lauderdale divorce lawyer will now have the ability of presenting evidence of all sources of income available to either party from investments and assets.

Another significant change to Florida’s alimony law are the statutory presumptions regarding length of marriages which will help the court determine which type of alimony is the most appropriate. A short term marriage is now considered a marriage that is less than 7 years. A moderate term marriage is a marriage greater than seven years but less than 17 years. Last but not least, a long term marriage is a marriage that is in excess of seven years.

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In Purrinos v Purrinos, the wife appealed the decision of the Miami-Dade divorce court that failed to award her any type of alimony. The parties were married for 16 years. At the time of the dissolution of marriage action, the husband and wife has three young children. The only marital asset was the marital residence. While both parties were employed during the marriage, the husband earned more than the wife. At the trial, the husband testified that he was involuntarily and temporarily employed. However, he expected to find a new job in the future.

In reversing the decision of the divorce court, the Third District Court of Appeal held that the trial court abused its discretion in failing to award the Wife alimony. The court reasoned that while an alimony award was inappropriate at the time of trial because of the husband’s inability to pay at that time, he may possess the ability to pay alimony in the future. Accordingly, the case was remanded to the trial court with instructions to award the wife a nominal amount of permanent periodic alimony.

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In Greenwald v Greenwald, the husband and wife were married on May 18, 2004. Fourteen months later, the parties filed for divorce in Miami-Dade. In support of her claim for permanent alimony, the wife claimed that the husband induced her to quit her job were she earned $100,00 per year. At trial, e-mail evidence proved that this claim was false since the wife wanted to quit her job prior to the marriage.

While the wife’s request for permanent periodic alimony was denied, Judge Scott Bernstein awarded her $65,000 in attorney’s fees and costs to be paid by the husband. In reversing the trial court’s award of attorney’s fees and costs to the wife, the Third District Court of Appeal held that the Miami divorce court should have denied the wife’s request for attorney’s fees and costs. The court reasoned that the wife made a claim for permanent alimony in a short-term marriage which is rarely successful, the case went to trial on the permanent alimony issue, the basis of the claim was false and the wife turned down a favorable opportunity to settle the alimony matter before trial in a lump sum payment of $36,000.

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Over the past couple years, the concept of alimony has changed and evolved as a result of recent appellate decisions in Florida. Many women who hire an attorney and file for divorce in Fort Lauderdale are now employed, self supporting and earning comparable pay as to their husband. In addition, the average length of a marriage has decreased. Accordingly, the amount of cases in which Broward divorce lawyers have permanent alimony awarded to their client has decreased. Also, the amount and duration of alimony has also been reduced.

The Florida legislature amended Florida Statute 61.14 to permit a payor spouse to seek to reduce or eliminate his or her alimony obligation when their former spouse is in a supportive relationship while remaining unmarried. The court will look at many different factors such as how long the recipient has resided with another person, whether they have pooled their assets or income and the extent to which the recipient has supported the other and whether or not they have jointly acquired any assets or property.

Alimony is based upon the need of one spouse for alimony and the other spouse’s ability to pay. However, the days of focusing on the standard of living that the parties have been accustomed to during the course of the intact marriage is not as significant. In the past, a divorce attorney in Broward would hire a forensic accountant to perform a lifestyle analysis. The forensic accountant would analyze tax returns, bank statements, check registers and credit card statements to ascertain a spouse’s needs, the other spouse’s ability to pay and the historical spending during the marriage. However, gone are the days that a spouse receives alimony which comprises of all of the luxuries accustomed to during the marriage including, but not limited to, spa visits, country club memberships, vacations and clothing allowances.

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