Alimony, Income, and Taxes After Florida Divorce
Going through a divorce can be a difficult time in the life of both parties. Even though both may agree to the divorce, it is still a major change in your life. Along with no longer having that person in your life, you may also be faced with the issue of alimony. Alimony is paid to one spouse by the other spouse as a way to ensure that the party receiving the alimony is able to continue to have the type of life they are used to having. This is fairly common when one spouse was the one who worked outside the home, while the other stayed home for the children. There are several types of alimony and spousal support in Florida, all of which are geared to ensure fairness to both parties.
One of the most common questions asked when it comes to alimony is whether alimony is counted as income. The short answer to this question is yes, the alimony does need to be included in the income totals for the spouse who receives alimony. For the spouse who receives alimony, this is often going to allow him or her to file taxes in a higher income bracket than they would otherwise.
The Following Fiancial Factors Apply to Alimony:
· One party makes payments based on an agreement made between the parties
· Alimony payments are not combined with other payments like child support
· The agreement should dictate when the alimony payments end
· The parties must live apart
· A joint tax return cannot be filed by the parties
· Ensure that no extra alimony is being paid
If the payment is for the actual purpose of child support, part of a property settlement, to help keep up the property, or is purely voluntary, the payment is not a true alimony payment. In these situations, the money given is not really alimony, so it does not have to be considered as a part of the party’s income.
Avoid Confusion – Ask a Qualified Divorce Attorney
Alimony can be a tricky path to navigate without the proper help. There are several federal laws and regulations that are in place, meant to help ensure that alimony is paid to the spouse, and that this income is reported as it should be at the end of the year. Without help, many people become confused and this can lead to severe financial consequences.
For those who are located in Jacksonville, Florida, Wendy Norman is here for you. Whether you are the spouse who needs help with alimony payments or the spouse who wants to ensure alimony is being paid, give her a call. She has helped hundreds of others get their lives back in order after divorce, and she can help you as well.