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Court Discusses Net Versus Gross Income in Florida Divorce Actions

In many Florida divorce actions, one party will seek alimony from the other. In determining whether to grant alimony requests, among other things, the courts will evaluate both parties’ income. Additionally, if one party is not employed, the courts may impute income to them. Regardless of whether a court assessment relies on an actual or imputed income, however, it must consider the net, rather than gross, amount, as discussed in a recent Florida case. If you have questions about how you can protect your financial health while dissolving your marriage, it is smart to meet with a Miami divorce lawyer at your earliest convenience.

History of the Case

It is alleged that the husband and the wife were married for 14 years before the wife initiated a divorce action. During the divorce proceedings, both parties presented evidence and testimony, including input from their accountants and a vocational expert who assessed the wife’s employability. The trial court determined that the husband had a monthly net income of $21,000 and the ability to pay alimony, while the wife’s monthly financial needs amounted to $10,319. The court imputed an annual gross income of $60,000 to the wife, noting her lack of effort to seek employment, along with an additional $2,756 in monthly investment income.

It is reported that based on these calculations, the trial court awarded the wife durational alimony of $2,600 per month for seven years. Additionally, the wife requested attorney’s fees, arguing financial need and the husband’s ability to pay. However, the trial court denied this request, citing the wife’s engagement in litigation that was primarily intended to harass, involving non-meritorious and baseless claims. The wife appealed the trial court’s decision.

Net Versus Gross Income in Florida Divorce Actions

Upon review, the court found that the trial court erred in determining an appropriate alimony award by using the wife’s gross income instead of both parties’ net incomes. Specifically, the court explained that the law requires that alimony be assessed by considering the parties’ net incomes, not gross incomes, and the trial court failed to determine the wife’s net income before making its alimony decision.

Regarding the denial of attorney’s fees, the court acknowledged the trial court’s findings of the wife’s misconduct. However, it ruled that the trial court failed to make necessary findings regarding the parties’ financial circumstances, specifically the wife’s need for and the husband’s ability to pay attorney’s fees. The absence of these findings made it impossible for the appellate court to review whether the denial was an abuse of discretion. Consequently, the court reversed the trial court’s decisions on both the alimony calculation and attorney’s fees, remanding the case for further proceedings consistent with its opinion.

Confer with a Trusted Miami Attorney

The Florida courts will only grant alimony requests if certain criteria are met, including proof of both the requesting party’s need and the opposing party’s ability to pay. If you want to learn more about your options with regard to divorce, it is in your best interest to confer with an attorney. The trusted Miami divorce lawyers at the Law Offices of Sandy T. Fox, P.A. can advise you of your rights and help you to seek your desired outcome. You can reach us at 800-596-0579 or by using the online form to arrange a conference.

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