What Factors Does The Court Consider In The Division Of Assets And Debts In A Divorce?
In the state of Florida, anything acquired during the course of the marriage is subject to 50/50 division and it doesn’t matter whose name is on the asset or liability. For example, if one party has a bank account during the course of the marriage in their own name, that account could be subject to equitable distribution. The same holds true with vehicles, retirement accounts, real property and bank accounts in individual parties’ names. This also holds true for liabilities. If one party has a credit card in their individual name, the other party is liable for half of that debt. The general rule has many exceptions and you may have a good argument to keep an asset from being divided by the Court. In addition, there are exceptions that may preclude you from being responsible for half of the debt.
Are Pensions And Retirement Plans Handled The Same Way As Other Assets In A Florida Divorce?
Generally, any sort of income that has occurred during the course of the marriage is subject to equitable distribution. If marital funds are paid into a retirement account, the income and increase is subject to equitable distribution. The Courts can issue a Qualified Domestic Relations Order to disburse the funds from one account to another to avoid a tax liability for the parties.
How Does The New Tax Bill Impact Alimony Or Spousal Support In Florida?
Previous to January 1st 2019, if a party was receiving alimony, that was considered income to them and the party who was paying alimony would receive a tax deduction for the amount of alimony they paid each year. However, after January 1st 2019, the law has changed. The payor is no longer able to receive a tax deduction and the payee doesn’t have to claim the alimony as income.
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