Divorces affect an individual emotionally as well as financially. Dividing assets, fixing an amount for spousal support, and understanding your tax obligations are key aspects of negotiating a settlement. Many people have to go through bitterly-fought legal battles to win control of prized assets or get a fair alimony amount. Ending a marriage can be a traumatic experience and the pain can cause you to lose sight of key issues. It is essential to consult an attorney who has experience of local conditions to understand the financial aspects of Florida divorces. For instance, it will be better to hire a divorce lawyer in Port Saint Lucie, Florida for a resident of that city rather than engaging an expert from another location. Such a professional will help you understand how the separation will impact your economic condition.
1. Division Of Assets
A major aspect which is the root cause of most conflicts in legal separations is asset division. Anything which you acquired in your individual capacity or do not own jointly with your partner is legally only yours. You can retail all non-marital assets or things which you obtained when you were not in the present relationship. However, any increase in the value of such assets must be shared between the two people. The laws of the state specify that marital assets or valuables which the couple acquired or own jointly must be done in an equitable manner. It usually means equal but if a judge feels that a 50-50 split is unfair to one partner, then he/she can devise another formula.
2. Determination Of Alimony
Alimony is an instrument through which the person with more financial resources supports the divorced partner. The duration for which the marriage lasted is an important factor considered by the courts while fixing the amount. Marriages which lasted for less than 7 years are considered as short-term and those which lasted for less than 17 years are termed as moderate-term. A long-term marriage is one which continued for 17 years or more. A spouse will receive temporary alimony as soon as the case is accepted by a court. It is replaced by another format once the divorce is formalized. Permanent alimony is usually granted in moderate and long-term relationships. Rehabilitative alimony is awarded to support a spouse’s educational or vocational pursuits.
3. Child Support Responsibilities
Child support responsibilities are one of the key financial aspects of Florida divorces. It is mandatory and parents are legally bound to pay financial assistance to meet their offspring’s basic and developmental requirements. The income shares model is applicable in Florida which means that a kid must get the same proportion of money which he/she would have received from unseparated parents. Courts consider parental income and the time spent by a child with the person to calculate the assistance amount. Individuals can deduct income taxes and other expenses like health insurance payments from their gross income. Salary, wages or any other worker’s compensation and even pension and social security benefits are considered as an individual’s earnings.
4. Division Of Debts
Debt division is another important point which can have a significant financial impact. Just like assets, Florida laws specify that an equitable distribution of debts must take place between the couple. Repayment of any liabilities which a partner incurred before the marriage is his/her sole responsibility. Such liabilities are termed as premarital debt. A non-marital debt is one which was taken by a person in his/her individual capacity. Its repayment cannot be shared with the other partner. A joint debt will have to be shared by the couple as both of them benefited from the money.
5. Tax Implications Of Divorce
You can file joint tax returns with your partner until the divorce decree is entered by a court. Filing separate returns can move you to a higher tax bracket but will make you responsible for your individual income only. The best way to understand the full implications of the separation on your taxes is by approaching a local expert. If you live in Fort Pierce, hire a divorce lawyer in that city to know how your changed marital status affects your tax liabilities. Do not forget that the amount received as alimony is taxable. The paying partner will enjoy the benefit of reducing the taxable income by the alimony amount.
These are the key financial aspects of Florida divorces which all people considering separation must know. They must hold extensive discussions with their attorney to assess the full impact of the divorce on their finances.