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.

Alimony reform is again on the Governor’s desk in Florida. The bill made it out of the legislature and was sent to Governor Scott on Monday, April 4, 2016. The Governor has until April 19 to sign or veto the bill. This is the latest round in the attempt to change the alimony law in Florida.

The Arguments

Many are in support of the alimony law already in place in Florida. Those who receive alimony, such as those who have never had a career due to having to raise children or keep the home, believe the alimony law should not be changed. On the other hand, those who are paying alimony commonly feel they are being taken advantage of and should not have to financially support a former spouse for many years after the divorce. No matter what the other spouse may have done during their marriage, many alimony paying spouses feel that the alimony law forces them to pay too much money to the other party, and for too long.

The New Proposition

The legislation that is being considered by the Governor, if it becomes law, will significantly change the way alimony is determine in Florida. These new changes include:

• Judges will have guidelines to calculate the amount of alimony payments
• The length of time alimony will be paid will also be based on guideline calculations
• There will no longer be ‘lifetime’ alimony payments
• There will be new circumstances that will be considered to modify or terminate alimony payments
• There will be no guidelines for marriages that lasted more than 20 years, and judges are encouraged to equalize the incomes of the parties
• The bill also will include the premise that the parents should have 50-50 custody or time-sharing with their children

The new alimony provisions, if passed, will apply to all initial alimony determination cases and all alimony modification cases pending on or after October 1, 2016. However, the new provisions regarding modification of an existing alimony obligation would apply to all cases. The new 50-50 time-sharing premise would apply only to initial divorce or time-sharing cases filed on or after October 1, 2016.
Even if the proposed bill does not become law, the alimony reform effort in Florida will continue in the future. Many officials within Florida are stating that this new bill simply gives judges guidelines to determine the amount of alimony and how long it will be paid, and is fair to both parties. These people feel that the judges have too much discretion and power, and the decisions are not consistent, and vary from one divorce to the next.

The Family Law Section of the Florida Bar has come out publicly against this bill, primarily because it includes the 50-50 time-sharing premise. The Governor can sign the bill into law or veto it (as he did to the prior alimony reform bill in 2013).

Here at Norman Law, we are ready to take on these new aspects of divorce and alimony, and work for you. If you need help with a divorce, alimony, child support or any other family law issue, contact us today to get started!

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.

Call 904.306.9926 For a Free Consultation Today!