How a dependence tax deduction is determined

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Even when parents have shared custody, it rarely works out where the child spends an even 50 percent of his or her time with both parents. The IRS gives the parent who had custody of the child the most throughout the year a tax break. Even if your divorce decree states that you share equal custody, both parents cannot receive the tax break. Below are ways to determine which parent can claim a dependent on their taxes:

The parent who spent the most days throughout the year with the child can claim him or her as a dependent. If you had your child 55 percent of the time and your ex had your child 45 percent of the time, you may claim a dependent.

If your child in fact did spend exactly half the time with both parents, the parent with the highest adjusted gross income gets to claim your child as a dependent.

Waiving the dependent tax deduction

A divorced couple can agree to terms on their own to allow one or the other to claim their child. The one who qualifies to claim the dependent can waive the deduction. In order to do this both parents must still pay 50 percent of the child’s living expenses for the year and the equal custody agreement must be memorialized in a court ordered divorce decree. If you and your ex agree to these terms, the one waiving the dependent can sign IRS Form 8332, giving the other the ability to claim the child as a dependent.

How to Divide Your Assets in a Divorce

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Before a divorce can be granted, all of the couple’s assets must be divided in a way that is agreed upon by both parties. This can get really difficult when it comes to the couple’s home, vehicles, securities, valuable collectibles, retirement benefits, and household items. But if you can both agree, it will make the divorce process quicker and easier. The following may help you divide your assets amicably:

Make a list

Make a list of all of your assets with your spouse. You should include your home or any joint property (land, a vacation home, lake cabin, etc), all vehicles, bank accounts, securities (stocks, bonds, money market accounts, CD’s), valuable collectibles, household items including furniture and appliances, and retirement savings and plans.

Play Nice

If you and your spouse can make a list in an amicable way and agree to how you’re going to divide your possessions you can save a lot of time and money. When there are property disputes, a third party has to be brought in to help you come to an agreement. Ninety percent of divorces are settled without a trial. Seeing a divorce mediator or hiring a divorce attorney can help you handle your property division.

Dividing the House and Car

The home and cars are often the cause of dispute in a divorce. The home is usually given to the parent with primary custody of the children if there are any. The car is more complicated and isn’t necessarily given to the spouse who solely holds the title.  The car may become marital property and given to a spouse depending on how much it’s worth.

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Are You Entitled to Alimony?

Deciding if a spouse will be awarded alimony in a divorce is relatively simple. When one spouse makes significantly more money than the other, that spouse will probably be required to pay the other alimony. But, if both make around the same amount each year, neither is usually required to pay alimony.

How is Alimony Set by the Court?

Determining whether a spouse will receive alimony after a divorce is the easy part. Determining the amount to be paid isn’t as simple. The following factors are considered when determining the amount of alimony to be paid:

• how much money each person could reasonably earn every month
• what the reasonable expenses are going to be for each of them
• whether an alimony award from one to the other would make it possible for each to go forward with a lifestyle somewhat close to what the couple had before they split—known in divorce law as “the standard of living established during the marriage”

If there isn’t enough money for both parties to establish a standard of living close to their marital standard of living, judges may look for ways to make the divorcing party share in the financial pain equally.

How Long Do Alimony Payments Last?

The amount of time alimony is required to be paid varies from each couple. Payment are usually always paid each month and can last until:

• a date set by a judge several years in the future
• your former spouse remarries
• your children no longer need a full-time parent at home
• a judge determines that after a reasonable period of time, your spouse has not made a sufficient effort to become at least partially self-supporting
• some other significant event, such as retirement, occurs, convincing a judge to modify the amount paid
• one of you dies

Every case is different, and not every divorce is as easy as determining who makes more. Contact us to speak to a divorce lawyer and ensure you get what you deserve.

Different types of Florida alimony

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When it comes to family courts approving alimony, there are a few different types, determined by the family situation:

• Temporary alimony – This is used during divorce proceedings themselves, and only when one spouse is in need of financial support while in the process of filing. Once the divorce is finalized, support stops.
• Rehabilitative alimony – This is a time-sensitive plan used specifically for acquiring training or education, wherein one partner will submit a detailed outline covering how long they need support for, and the amount of money the education/training will require.
• Bridge-the-gap alimony – An extremely short-term form of alimony (max 2 years), this is usually used as a form of support during temporary financial hardship following divorce. For example, if the individual is attempting to sell property (houses, vehicles, etc.), this can be used to cover living expenses until the sale is finalized.
• Permanent alimony – This one requires judges to prove that one spouse will likely be unable to become self-supporting in the future, but in cases where one spouse’s current economic situation is likely to be permanent, it is useful.
• Durational alimony – This is generally only used when other forms of alimony do not apply, but there is still need for spousal support. The reason it’s called durational is because the term is it valid for can be no longer than the length of the marriage up to the point of divorce.

Factors in alimony amount

Once the court has determined the type of spousal support that is appropriate, it then comes down to determining the amount. There are myriad factors that come into play here, but some of the common ones include:

• Each spouse’s age, and physical/emotional condition
• Sources of income available to each spouse compared to living costs
• Each spouse’s potential earning capacity, including employment history, education, vocational skills, etc.
• Current marital standard of living
• How long the marriage was
• How much each spouse contributed to homemaking, child care, and supporting the other spouse during education/career-building
• Whether adultery was present in the marriage

This list is nowhere near exhaustive, but it gives you a few ideas of criteria that judges will consider when determining alimony amounts. If you are facing alimony currently, or are considering alimony in regards to a pending divorce, do not hesitate to get in touch with a divorce attorney immediately.

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In the state of Florida, there are many different types of alimony one can be awarded after the end of a marriage. These types of alimony are dependent on a variety of circumstances including financial statuses and the amount of time the marriage was upheld. Florida alimony types vary and are important to know if you are involved in a divorce case. Here’s a look at the different Florida alimony types.

Rehabilitative

This type of alimony is intended to help a spouse get on their feet by providing job training or education training. In order for rehabilitative alimony to be approved, the spouse receiving the alimony needs to have a plan for the rehabilitation, and the plan needs to be followed throughout the entire course of the alimony. If not, the spouse becomes at risk for modification or elimination.

Durational

Durational alimony is provided to help a spouse for a delegated amount of time. In cases where durational alimony is awarded, there is usually no need for assistance long term. Most of the time, modifications to durational alimony cannot be applied to the length of time. However, it is important to note that durational alimony is not provided for a longer period of time than the marriage itself.

Bridge-the-Gap

Bridge-the-gap alimony is provided for no more than two years, and is intended to help a spouse make the transition from married to single life. This type of alimony is not eligible for modification because it is a short-term alimony.

Permanent

Permanent alimony is provided when a spouse does not have what they need to support themselves and provide their own necessities of life. The length of time permanent alimony is awarded is based on the length of the marriage. This type of marriage is not usually awarded to short-term marriages unless their are unique circumstances.

Call DeVoe Law Firm today to discuss your alimony case and see if you’re eligible to receive alimony.