ANDREA REID, ESQ. Marital and Family Law Attorney Boca Raton, - PowerPoint PPT Presentation

ANDREA REID, ESQ. Marital and Family Law Attorney Boca Raton, Florida 2300 Glades Road Suite 203E Boca Raton, FL (561) 703-6047

THE TOP FIVE DIVORCE REALITIES EVERY FINANCIAL PLANNER SHOULD KNOW

BE THE CALM IN THE STORM

IN ALIMONY SITUATIONS, MOST CLIENTS HAVE ONE SHOT TO GET IT RIGHT… Determination of whether there is a need for alimony and ability to pay alimony is made at the time of final hearing, and a trial court may not speculate about what might happen in the future… Italiano v. Italiano 873 So 2d 558 (Fla. 2 nd DCA 2004) Florida Statute §61.14 allows for the modification of alimony, support and maintenance however…. First, there must be a substantial change in circumstances. Second, the change must not have been contemplated at the time of the agreement or Final Judgment of Dissolution of Marriage. Third, the change prompting the request for modification must be Substantial, Material, Involuntary and Permanent in Nature.

GET TO KNOW THE FINANCIAL AFFIDAVIT

IDENTIFY THE PAYOR SPOUSES ABILITY TO PAY F.S. §61.08 (2)g – The trial court must consider all sources of income available to the parties including that which is available through investment of any asset held by the party. F.S. §61.08 (2)d – The trial court must consider the financial resources of each party. Including any Income and Marital and Non- Marital Property Chart and consider the payor spouses NEEDS in order to identify his or her ABILITY to pay alimony. (What is left over?)

IDENTIFY THE PAYEE SPOUSES NEED FOR ALIMONY Identify the income of, if any, of the payee spouse (employment income, income from assets including investments, regular rate of return on equitably distributed assets, any regular and recurring income to the payee from any source) Chart and Identify all his or her living expenses as were customary to their standard of living during the marriage. Whatever needs cannot be met with the payee spouses income is considered their “NEED” for alimony purposes.

EQUITABLE DISTRIBUTION MAY NOT SEEM “EQUAL” ¡ CONSIDER ALL OF THE ASSETS AND LIABILITIES ¡ CONTEMPLATE WHO IS ULTIMATELY LIABLE FOR THE DEBT (TITLE) ¡ CONSIDER HOW EACH ASSET OR LIABILITY CAN BE DISTRIBUTED TO EQUALIZE THE AMOUNT EACH SPOUSE WILL RECEIVE AT FINAL JUDGMENT

CHILD SUPPORT GUIDELINES ARE FOUND IN FLORIDA STATUTE. §61.30 § Husband’s net income + Wife’s net income = Combined Income ($5,000 + $5,000 = $10,000.00) § Combined net income = Florida Guidelines (1 child with parents at 10k net income = $1,437.00 Florida Guidelines) § Count overnights if over 20%/ 73 overnights a year apply gross up method § Parent’s share in Florida guidelines amount in accordance with their percentage of the combined net income ($1,437.00 x .5 = $718.50 each) Health Insurance, Child Care, Uncovered Medical expenses can be included in guidelines and paid by each parent in accordance with their respective percentage of obligation in the combined net income

CHILD SUPPORT CAN DEVIATE FROM GUIDELINES ¡ F.S. 61.30 (11)(a) The court may adjust the total minimum child support or either parties share of the support based on: 1. Extraordinary medical, psychological, educational, or dental expenses. 2. Independent income of the child, not to include moneys received by a child from supplemental security income. 3. The payment of support for a parent which has been regularly paid and for which there is a demonstrated need. 4. Seasonal variations in one or both parents’ incomes or expenses. 5. The age of the child, taking into account the greater needs of older children. 6. Special needs, such as costs that may be associated with the disability of a child, that have traditionally been met within the family budget even though fulfilling those needs will cause the support to exceed the presumptive amount established by the guidelines. 7. Total available assets of the obligee, obligor, and the child. 8. The impact of the Internal Revenue Service Child & Dependent Care Tax Credit, Earned Income Tax Credit, and dependency exemption and waiver of that exemption. The court may order a parent to execute a waiver of the Internal Revenue Service dependency exemption if the paying parent is current in support payments. 9. An application of the child support guidelines schedule that requires a person to pay another person more than 55 percent of his or her gross income for a child support obligation for current support resulting from a single support order. 10. The particular parenting plan, a court-ordered time-sharing schedule, or a time-sharing arrangement exercised by agreement of the parties, such as where the child spends a significant amount of time, but less than 20 percent of the overnights, with one parent, thereby reducing the financial expenditures incurred by the other parent; or the refusal of a parent to become involved in the activities of the child. 11. Any other adjustment that is needed to achieve an equitable result which may include, but not be limited to, a reasonable and necessary existing expense or debt. Such expense or debt may include, but is not limited to, a reasonable and necessary expense or debt that the parties jointly incurred during the marriage.

INEXPENSIVE CAN GET EXPENSIVE ¡ There is no excuse for clients not to invest in an experienced and competent divorce attorney ¡ Only refer when you know the attorney’s track record ¡ When an inexperienced and/or incompetent attorney touches a divorce file, the cost can sky rocket and become outrageous. The reason you hear horror stories is because the family law market is saturated with those who dabble in family law.

FINALLY…… PLEASE!!! Do not allow your clients to spend their savings in a divorce process that is usually predictable. If you can paint the reality of a client’s financial picture from the onset of a divorce, it will save them time money and energy.

ANDREA REID, ESQ . Marital and Family Law Attorney Boca Raton, Florida 2300 Glades Road Suite 203E Boca Raton, FL (561) 361-8300