The alimony statute in Florida, known as Fla. Stat. 61.08, has been significantly overhauled by the state legislature. These new provisions took effect on July 1, 2023, and impact various aspects of alimony, including modification criteria. The most noteworthy change is the replacement of permanent alimony with a formula-based system that sets limits on both the duration and amount of alimony payments.
Different Forms of Alimony Previously:
There were four types of alimony in Florida: permanent, durational, rehabilitative, and bridge-the-gap. While permanent alimony is now obsolete, the other three forms still exist. The court must evaluate several factors, such as the length of the marriage, the parties’ incomes and earning capacity, the standard of living, and the anticipated post-divorce needs of each party, to determine the appropriate form of alimony. In certain circumstances, the court may award multiple types of alimony.
Duration of Alimony Under the new law:
Durational alimony can only be awarded in marriages lasting three years or more. Bridge-the-gap alimony remains available for very short marriages but is limited to a maximum duration of two years. The law sets a cap on the length of durational alimony based on a percentage of the marriage’s duration. In short-term marriages (less than 10 years), durational alimony cannot exceed 50% of the marriage’s length. For moderate-term marriages (10-20 years), the limit is 60%, and for long-term marriages (20 years or more), it is 75%. Exceptions to these caps may be granted under specific circumstances outlined in the statute.
Determining the Amount of Alimony:
The new law states that the amount of durational alimony awarded should be based on the recipient’s “reasonable need.” However, it also imposes a cap on the amount, limiting it to 35% of the difference between the parties’ net incomes. The statute does not provide guidance on how the court should determine what constitutes a “reasonable” need. Net income is defined in accordance with Fla. Stat. 61.30(2) and (3), which governs income calculation for child support purposes. It includes all forms of income, both taxable and non-taxable, and provides a detailed list of what should and should not be included as part of gross income. Under the previous law, income could be attributed to a spouse who was voluntarily unemployed, working part-time, or in a low-paying job. However, the new statute requires the court to assign income to a voluntarily unemployed or underemployed spouse based on recent work history, occupational qualifications, and prevailing earnings in the community.
Factors to Consider Similar to the previous statute:
The new law outlines various factors that the court may consider when determining the appropriate form(s) of alimony. The court must evaluate all relevant factors before making a decision. It is important to note that in certain situations, the new law establishes presumptions rather than absolutes. At each stage of the analysis, the parties have the opportunity to persuade the court why applying these presumptions would be unfair or inequitable.
Here at Orlando Divorce Planning we work with our clients to help calculate what potential alimony payments may look like based on both reasonable need, ability to pay, and the new duration and income cap rates. More importantly we work to determine what effects on your financial situation those potential outcomes will have post-divorce.
Take Control of Your Future
When you consider divorce, or if you know someone who is contemplating divorce, one of the biggest realities for those in the divorce process is the financial settlement and financial analysis post-divorce. Get the assistance of Crockett Bohannon, CPA® and CDFA® at Orlando Divorce Planning.
We will provide step-by-step guidance on matters related to divorce. With a wide range of experience and expertise related to divorce issues, our team will simplify the process and provide much-needed clarity in areas such as long-term tax consequences, asset, and debt analysis, dividing pension plans, continued health care coverage, stock option elections, protecting support with life insurance, and much more.
