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You may be tired of receiving child support or alimony payments late or not at all, and you would like to be paid directly from the employer of your ex-spouse or child’s father/mother.  Florida Statutes 61.1301 provides that an income withholding order (IWO) can be entered once there is an order of alimony or child support by the court.  The IWO must be issued by separate order.

Get Help Filling Your Income Withholding For Support Form (IWO)

There is a federally approved and required IWO that allows you to garnish income for child support and alimony.  See 42 U.S.C. 666, Social Security Act.  Child support arrearages can be withheld also, and the employer/income withholder is given instructions on how much to withhold until full payment is made.

There are very clear rules about the IWO, and an IWO may be rejected, and payment delayed if not completed properly.  An IWO will be rejected if the form does not contain all the necessary information.  In addition, the correct form must be used, or it will be rejected.

In Florida, you must also submit the Florida Addendum form to the court for signature with the IWO.  The Florida Addendum must be used when child support for multiple children has been ordered.  The Florida Addendum must be attached because the IWO form does not contain information that is statutorily required in Florida to be included in all withholding orders.  Because the IWO cannot be altered, the Florida Addendum was created and is used in conjunction with the IWO.

Income Withholding Orders can be complex and difficult to complete properly.  You need an experienced Jacksonville family law attorney to assist you with garnishing wages for child support and alimony payments.

Call Jacksonville Divorce Attorney Wendy Norman today to request a consultation: 904.306.9926

One of the changes to the law made by the Tax Cuts and Jobs Act is the elimination of the tax effects of alimony payments as of January 1, 2019. Prior to January 1, 2019, in most cases, alimony is a tax deduction for the payor and is taxable income of the recipient. As of January 1, 2019, however, alimony payments are not deductible by the payor and are not included as income by the recipient. This change is expected to reduce the amount of alimony payments, because it is will reduce the cash flow of both the payor and the recipient. It may also impact child support, which is determined in large part based on the incomes of the parties.

Major Change to Alimony Tax Deduction for 2019

This law will not impact alimony awards in judgments and orders entered prior up to and including December 31, 2018, and the law cannot be used as a basis to modify prior alimony awards. Modifications of awards entered prior to January 1, 2019 will be determined based on the law in effect at the time of the entry of the judgment/order unless the judgment or order specifically states that future modifications of alimony are subject to the tax law at the time the judgment/order was entered.

One thing that is not clear is the impact this law will have on divorces filed on or after January 1, 2019 which involve prenuptial (or postnuptial) agreements entered into prior to January 1, 2019.

For questions related to other Alimony and Spousal Support issues, please contact the divorce law office of Wendy Norman at (904) 306-9926 to schedule a consultation.

Divorces can be very rough, and with Florida’s Mandatory (Financial) Disclosure rule, it can become even harder when there are things that parties are not interested in disclosing.

In this blog post, we will briefly cover how important the disclosure of financial records is in a divorce. It is vital that you provide the required financial documents when working with your divorce attorney throughout the proceedings. In order to provide you with the best advice, your divorce attorney must know everything about your marriage. This includes your finances, both separate from and together with your spouse. Of course you’ll also discuss other reasons (likely more obvious disclosures) the divorce may be taking place, and all issues that need to be addressed. The financial disclosure allows your attorney to review and analyze documents that provide more insight and gives your attorney a better understanding of your entire divorce case.

When Mandatory Disclosure is Not Needed?

In some cases, Mandatory Disclosure is not needed during a divorce. This is only applicable when the case is not being litigated in court and both parties are in agreement with the divorce (considered an Uncontested Divorce). However, even though the financial disclosures can be waived or otherwise not required, both parties must still fill out and file a Financial Affidavit that discloses detailed financial information. Under no circumstances can the Financial Affidavits be waived for a divorce proceeding, even when both parties are on board with filing for a divorce.

Florida Family Law Rules of Procedure

Mandatory Disclosure is found under the Florida Family Law Rules of Procedure. This Rule lists sixteen types of financial documents that must be provided and exchanged by both parties.
These include:

· Bank account statements
· Tax returns
· Pay stubs
· Pension plan statement
· Assets
· Debts

And the list continues. When a person first files a divorce case, he or she has have 45 days to provide the other party with the required financial information. The other party must also provide the required financial information within a specified time period. Parties can ask for an extension if needed. In most cases, if the person has a legitimate reason for the delay, an extension will be granted by the court.

The Reasoning Behind Mandatory Disclosure

Aside from helping your lawyer to better handle your case, providing the financial disclosure documents can lower the expense that is often associated with litigation. It also gives the court sufficient information to make a better informed financial decision for both parties. Though Mandatory Disclosure can seem rather invasive and gathering the documents may take some time, it is really in the best interest of both parties going through a divorce.

Wendy Norman works as a Divorce Attorney in Jacksonville, FL and welcomes comments or questions from readers. Please Contact Us online to setup an initial consultation or call 904.306.9926.

When children are involved in a divorce or when the parents were never married in the first place, one parent is usually required to pay child support to the other to help financially provide for the children. Florida wants to ensure that in these cases, children have their needs met and child support is meant to ensure this. When it comes time to file taxes, many parents have questions. A common question is which parent may claim the children as dependents.

Which Parent Pays Taxes on Child Support?

Child support is not taxable. The parent receiving child support does not have to report it on their taxes, and the parent paying child support does not get a deduction on their taxes. Therefore, even though a parent is paying child support, his or her taxable income is not affected.

Claiming a Child on Taxes

When there is one child and the parents are not together, another issue is which parent can claim the child. The Child Tax Credit can greatly help out one parent, but who gets to take this credit? Under no circumstances can both parents claim the one child. If they do, they are going to find themselves having to answer to the IRS, and may be found to have committed tax fraud. Instead, if the Final Judgment does not address this issue, the parents have to decide who should claim the child on their taxes. In most cases, the parent the child spends the majority of his/her time with should claim the child. Generally, parents choose to alternate years for claiming the child.

IRS Form 8332 – Release of Claim to Exemption

There are also times in which one parent may have the tax credit; for example, if the parent furnished over 50% of the child’s support. In this situation, and others, IRS Form 8332 (Release of Claim to Exemption for Child of Divorced or Separated Parents) is signed by the other parent and filed with the tax return. Without this form, the parent claiming the child will have to prove that he or she provided more than 50% of the support for the child. This is an issue parents need to discuss to avoid problems with the IRS.

For those parents who are having a difficult time dealing with filing taxes after divorce, or when dealing with alimony or child support, Wendy Norman is here to help. She has been practicing in family law for several years in the Florida area, and she can help you as well. Just give her a call at 904-306-9926.

When a divorce is finalized, in the state of Florida, one spouse may begin receiving alimony as a means to ensure he or she is financially cared for after this life changing event. However, alimony can greatly affect you when it is time to file your tax return. This is something people may not think about during the divorce proceedings. Now that tax season is here, it is time to look at how alimony is going to affect the tax situation for both parties.

Both parties have to report alimony on their tax returns. The party who is paying alimony can report it as a tax deduction. The party receiving alimony must report it as additional taxable income. An example:

• A woman pays her ex-husband $1,000 every month for alimony. This results in her paying $12,000 per year. Her yearly income is a total of $70,000. After claiming the alimony as a deduction, her taxable income is reduced to $58,000.
•Meanwhile her ex-husband has a yearly income of $40,000. His taxable income will be $52,000 after he includes the alimony payments.

Tax Information Regarding Lump Sum Alimony Payments

The above example reflects a case in which alimony is being paid out over time. But, what about when alimony is paid as a one-time lump sum? Instead of paying alimony totaling $48,000 over the course of 4 years, instead a lump sum of $48,000 may be paid all at once. Generally, the same rules are going to apply. The person who pays the lump sum will claim it as a deduction and the person who receives it will report it as taxable income.

No matter what type of alimony a person receives, the addition and subtraction of income due to alimony results in one person lowering their taxable income and the other person increasing their taxable income. If you are the party receiving alimony, you may wind up getting taxed at a higher rate due to the addition of these funds into your total income.

The IRS Recapture Rule

This IRS rule is a way to ensure that one spouse is not trying to hide property settlements as alimony, because property settlements are not tax deductible. Also, the recapture rule ensures that alimony payments do not allow one party to get an improper tax break. This can be seen when one party tries to pay off their alimony obligation faster by paying more in one year than is required.
Here is how the rule works:

• There is a three-year review of these funds
• If the alimony paid Year 2 is more than $15,000 greater than what was paid in Year 3, then the ex-spouse who is paying the alimony will pay taxes on the amount that exceeds the $15,000 during Year 3.
• If the alimony paid in Year 1is at least $15,000 greater than what was paid in the Year 2 and Year 3, then the excess will be considered income for the spouse receiving the money.

There are exceptions to this rule that spouses need to be aware of, and this is where Wendy Norman can help. These exceptions can be highly case-specific, so in this case it is best to work with a Florida divorce attorney who has experience in these situations, as Wendy Norman does.

If you’re in the Jacksonville Florida area, feel free to reach out to our office to request a free consultation at: 904.306.9926.

At this time of year, many people are getting ready to file their taxes and are gathering all of their records and financial documents together. For those who have recently divorced, this can be a new challenge. Filing taxes after divorcing in Florida is going to be a bit different than when you were married. With that being said, one of the best pieces of advice we can give you is to not wait until the last minute. If you do, you could find yourself facing a looming deadline you cannot meet!

Divorce and Filing Status

One of the most common questions we are asked is, “How should I file my taxes? Married, single, head of household?” Many people finalize their divorce in the last half of the year, so they were married for the majority of the previous year. It stands to reason why a person would question how they file. In the state of Florida, you will file based on your marital status on the last day of the year. Even if you were married for 11 and half months of the year, you must file a separate return from your ex-spouse. For this reason, many divorcing couples choose to wait to have the divorce finalized after the beginning of the year, allowing them to file together one last year.

Claims and Adjustments

Perhaps one of the bigger problems that newly divorced couples face after divorce and during tax filing season is who gets to deduct what, and who gets to claim certain items? This issue can quickly escalate to an argument that may cause bitter feelings and anger. Here are a few tips to help in calculating taxes after separation pertaining to what you can and cannot claim:

1. Assets you gained during the divorce are generally not taxable..

2. You cannot deduct legal fees related to your divorce.

3. If you are receiving alimony, you must report it as taxable income; if you are paying alimony, you should claim it as a deduction.

4. Donations can be split, so each party can claim fifty percent of the donations made during the past year.

5. If children are involved, only one parent can claim the child as a dependent.

Tips to Make Your Tax Filing Run Smoother

· Upon your divorce becoming final, be sure to file a new W-4 with your employer, this can make it a bit easier come tax season.

· File a Form 8822: Change of Address when filing your taxes (if you moved), especially if you expect to receive your refund in the mail from the IRS.

· If you changed your name as part of the divorce, be sure your report it to the Social Security Administration before you file your tax return.

Tax season can be stressful, but add in a new divorce, and it can become even more stressful. You can talk with a tax specialist or accountant for most issues you have. Here at the Norman Law office, we can also help with tax questions related to your divorce.

If you are considering a consultation with a Jacksonville divorce attorney, please don’t hesitate to reach out to our office. Wendy Norman has years of experience in the Florida area, and can help you to get through this difficult time.