If you’re considering getting a divorce, then you’re probably wondering whether you’ll have to pay alimony in Florida. Well, there are various excellent ways to steer clear of paying alimony—and the best part is that they are ethical and lawful—taking such measures when you find yourself in such a predicament would be the best course of action.. Not only will you have a clean conscience, but you’ll also be doing right by the courts.
To circumvent alimony payments, you should strive to employ one of the expert strategies discussed here rather than using risky techniques like spontaneously quitting your job or, worse, filing for bankruptcy.
What Does Florida Law Mandate?
The underlying principle guiding an award for Florida permanent alimony is the inequality of the two party’s monetary resources. Nonetheless, the inequality in financial resources alone does not suffice for one to get an alimony award. Rather, it considers one spouse’s capacity to pay alimony vs. the other spouse’s need for Florida permanent alimony.
What Is the Average Alimony Payment?
In order to calculate alimony in Florida, the need of one spouse and the other spouse’s ability to pay are taken into consideration. That said, the American Association of Matrimonial Lawyers guidelines mandate that the alimony amount be calculated by taking 30% of the payer’s gross annual income and subtracting it from 20% of the recipient’s gross annual salary.
The court must also check to see whether the spouse asking for alimony has a need and then ascertain if the other spouse has the capacity to satisfy all or part of that need. Basically, the court will assess the deficit or surplus on each party’s financial affidavit and base the alimony award on this information.
Is Alimony in Florida Taxable?
Previously, when a couple successfully filed for a divorce in Florida, the spouse paying the alimony was able to deduct taxation on it whereas the recipient paid tax on it. However, all that changed after January 1, 2019. Today, an alimony recipient cannot treat it as an income. As such, they cannot use it to make IRA payments. Similarly, an alimony payer can no longer deduct tax on it. In a nutshell, divorcing in Florida will currently cost both parties more than it did before January 1, 2019.
That said, here is an outline of the tax implications:
- Lump-sum payments: There are cases when alimony is paid in a lump sum, especially when the payer has steady income and employment. While it may sound appealing to receive alimony in a lump sum, keep in mind that the alimony received is no longer taxable as an income—so depending on the money being received as alimony, the recipient may end up facing a substantial tax obligation.
- In arrears: Generally, arrears in alimony are neither taxable on the payer nor are they in the hands of the recipient. As such, any calculation of spousal support will be discounted to arrive at an after-tax figure.
Are There Any Penalties for Delinquent Payments?
Among the consequences you could face for refusing to pay alimony include:
- Wage garnishment: The judge may rule that a specific portion of your wages be set aside for alimony payment before you receive any part of your wages.
- Property seizure: Your valuable assets such as rental income, dividends, or physical property can be seized if you refuse to pay alimony.
- Contempt of court: The judge may rule that you are in contempt of court. As a result, you may end up incurring fines, be detained in prison for a short while, or both. The court may also order that you remain in custody until you pay the alimony.
- Tax refund designations: The court may rule that your tax refunds be used to settle your unpaid alimony.
- Property liens: The court may direct that a lien be put on your property to prevent the finality of its sale until that time when you settle your unpaid alimony.
It is important to note, your former spouse has the right to file for judgment against you if you have a large amount of alimony arrears.
Get Legal Help
If you are having a hard time making alimony payments, or rather, your former spouse has refused to make alimony payments, you have several options at your disposal. Seek legal advice from a divorce lawyer to find out the best course of action in different situations.
