Definition, Types, and Tax Rules of Alimony in Florida
Alimony in Florida is the financial support ordered by the court for someone to give their spouse upon separation or divorce. It is a periodic predetermined sum given to a spouse after separation or divorce to support the spouse in maintaining the lifestyle they are used to before separation. The default to pay alimony by the payer may lead to criminal charges. However, it stops in the case of death or when the spouse remarries. Also, alimony may not be awarded if the marriage is fairly new or when the spouses have similar annual income.
The amount of alimony to be awarded and for how long is strongly determined by how long the marriage was and both spouses’ current and future income.
Types of Alimony in Florida
There are four different types of alimony that the court may award in the proceedings of dissolution of marriage in Florida;
- Bridge the Gap Alimony
Bridge the gap alimony is designed to assist a spouse in covering identifiable and legitimate short-term needs such as living expenses, education, etc., to assist a spouse with transitioning to single life from being married. It provides the spouse with financial support for the spouse for a maximum period of two years. However, the award terminates upon the death of either spouse or when the receiving spouse remarries.
- Rehabilitative Alimony
Rehabilitative alimony is designed to make the spouse who left the workplace or education self-sufficient for the marriage’s sake. It is awarded to assist the spouse in self-support through either redevelopment of previous skills or acquisition of training and education. For a spouse to receive rehabilitative alimony, a defined plan must state how much money and time will be needed.
- Durational Alimony
Durational alimony in Florida is newly enacted. It is designed to provide economic assistance for a spouse for a short or moderate period. Usually, the period of alimony does not exceed the period of marriage. For instance, if the marriage were six years, the spouse would only receive durational alimony for six years.
- Permanent Alimony
Permanent alimony is designed to meet the necessities of a spouse who lacks financial ability. It is usually awarded for long-term marriages and for the spouse who may be outside the workforce for a long period or might not be able to continue with the lifestyle or standard of living they enjoyed in marriage. To award permanent alimony, the following factors have to be considered;
- The standard of living in marriage
- The age of each spouse
- The financial capacity of each spouse
Tax rule of Alimony in Florida
Before now, as of January 2019, alimony has been non-taxable to the recipient and non-deductible to the payor. However, recently, alimony has been tax-deductible to the party paying the alimony support and taxable to the party receiving it. The IRS imposes certain requirements for alimony to be taxable.