In many marriages, one party earns the bulk of the income while the other takes care of the home. If a couple with such an arrangement decides to divorce, the lesser-earning party may be eligible for alimony. Further, if the court errs in determining the amount of alimony owed, they may be able to seek an adjustment, as discussed in a recent Florida case. If you want to learn more about how a divorce may impact your rights, it is prudent to speak with a Miami divorce lawyer as soon as possible.
Factual Setting and Procedural Background
It is alleged that the parties were married in 1986 and had three children who had all reached the age of majority prior to the end of the marriage. The wife filed for divorce in 2015, and the husband filed a counter-petition. During their marriage, the husband was the sole income earner, while the wife was a homemaker.
Reportedly, after a trial in 2019, the court entered a final judgment dissolving the marriage. The appellate court reversed this judgment in 2020, however, because of an error committed by the trial court when it rejected the wife’s request to reopen the case. On remand, additional trial proceedings were held, and a new final judgment was entered in November 2022. The wife then appealed the final judgment.
Amendments of Final Judgments
On appeal, the court reviewed the trial court’s determinations regarding alimony and the valuation date of the husband’s retirement accounts. In the 2022 final judgment, the trial court had ordered the husband to pay periodic permanent alimony to the wife, stating that this alimony would be taxable as income to the wife and deductible to the husband.
The court found this to be in erroneous, as the relevant provision of the Internal Revenue Code had been repealed by the Tax Cuts and Jobs Act, which applied to divorce decrees executed after December 31, 2018. Since the final judgment was entered after this date, the alimony payments should not have been treated as taxable income for the wife.
Additionally, the court evaluated the trial court’s assessment of the parties’ financial statuses from July 2018 to determine alimony need and ability to pay. The trial court awarded the wife $2,500 per month, finding that she did not need more and that the husband could not afford to pay more. However, the court concluded that the evidence did not support the trial court’s findings, highlighting the disparity in the parties’ financial situations post-dissolution. The husband’s gross monthly earnings were significantly higher than the wife’s, even after alimony and other expenses were accounted for, indicating his ability to pay more.
Lastly, in determining the value of the husband’s retirement accounts, the trial court used numerous dates from 2015. The court found this to be an abuse of discretion as it denied the wife the passive appreciation of these accounts accrued up to the date of the final judgment in 2022. The court emphasized that, in the absence of post-filing contributions by the husband, the passive accumulation should be included in the marital assets subject to equitable distribution.
Thus, the court reversed and remanded the case with directions to correct the alimony taxability error, reassess the need and ability to pay alimony with consideration of additional evidence and revalue the husband’s retirement accounts to include passive appreciation. The rest of the final judgment was affirmed without discussion.
Meet with an Experienced Miami Attorney
If you wish to end your marriage, it is important to understand how it may impact you financially and legally, and you should meet with an attorney. The experienced Miami divorce lawyers at the Law Offices of Sandy T. Fox, P.A. can evaluate your case and help you to determine your options for safeguarding your rights. You can reach us at 800-596-0579 or by using the online form to arrange a meeting.