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.

Within the state of Florida, there is a term called Equitable Distribution that is used in divorce proceedings. In short, Equitable Distribution means that possessions/assets and debts which came about during the marriage are divided as equally as possible between the parties getting a divorce. This can make it easier in one sense for a divorce; however, there are also problems that can arise.

In most cases, those who are going through a divorce are going to work with their lawyers in order to determine who gets what (distribution of assets and debts). In cases in which both parties want the same asset/assets or don’t want certain debt, it can come down to the judge making the decision as to who gets what.

Proven Adultery Can Impact Equitable Distribution

With this being said, many people wonder if infidelity can affect the equitable distribution of the marital assets and debts. Florida is considered a “no fault” divorce state. This means that people can get a divorce without proving why a divorce is needed or whose fault it is. In most cases, the person who wants the divorce simply states that the marriage is ‘irretrievably broken” and the divorce proceedings can continue. With this in place, and the equitable distribution rule, most parties believe that the marital assets and debts will be equally divided, no matter what. However, that is not always the case.

When one spouse does commit adultery, and it can be proven, it can affect the equitable distribution. When the adulterer in the relationship is using his or her money in order to buy their new boyfriend or girlfriend gifts, go on trips and the like, then this can be taken into consideration when dividing the assets and debts.

In some cases, if the financial actions of the cheating spouse affect the wife or husband, or children involved, then the court can give the adulterer less property and other assets, or make him or her responsible for more debt. The idea is that the adulterer has misused what should be marital funds and he or she should not be treated the same in the equitable distribution of the assets and debts because of his or her actions.

Alimony and Equitable Distribution

In addition, this type of situation can also affect whether one party receives alimony from the other or not even though Florida is a no-fault state. In most divorces, the equitable distribution goes through without a hitch, but it is important to note that in cases where adultery has affected the marital finances, it can become an issue during the divorce proceedings.

For those who are thinking about divorce and are concerned with Equitable Distribution, please contact us. Here at Norman Law, we are here for you and want to help you in any way we can with your divorce!

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.

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!