Florida law provides that a presumption of entitlement to alimony arises in long term marriages. This presumption does not mean that the spouse purporting to be in need automatically receives alimony in a long term marriage. Even in long term marriages (which are defined by the 2nd District Court of Appeal, including Pinellas/ Paso, Hillsborough and Manatee Counties, as one of at least 15 years’ duration), the Court will evaluate both the ”need” (for the support) and the “ability” (to contribute towards same). In so doing, the Court will evaluate a variety of factors which are set out in section 61.08, Florida Statutes, including: (a) the standard of living; (b) duration of the parties’ marriage; (c) the age and health of the parties; (d) the financial resources of the parties (including non-marital assets); (e) in certain instances, the time necessary for either party to acquire sufficient education or training to enable him or her to find appropriate employment; (f) the contribution of each party to the marriage, including considerations of homemaking and child rearing; and (g) all sources of income available to either party. Section 61.08(2)(a)- (g), F.S.
Generally, in a long term marriage, if the spouse with the perceived ability to pay does not rebut the presumption (of entitlement), and the other spouse has a demonstrable need for support , then the court may award permanent periodic alimony (there are other types of alimony but this post will deal primarily with “permanent periodic”). The amount of support will be based primarily on the receiving spouse’s need, which takes into consideration such expenses as household and living expenes (rent or mortgage, utilities, phone, food, gas); insurances (car, health); and even items based on standard of living considerations (vacations, entertainment, grooming, clothing). However, the court must also evaluate the other spouse’s ability to so contrnot award support in an amount that leaves the other spouse without an ability to meet his or her own reasonable living and household expenses or otherwise destitute. Case law also states that the courts must not simply “equalize” the parties’ incomes but must consider the factors set out in section 61.08(2), F.S. and the other spouse’s true need for the amount of support.
Determining need and ability gets murky in situations in which one party (or both) is (are) voluntarily under- or un-employed. Let’s say that the Wife worked during the parties’ long term marriage except for two brief periods of maternity leave. During the Marriage, and as recent as two years ago, the Wife was earning upwards to $50,000 gross annual salary with benefits. This is the most she ever earned during the Marriage. She is 42 years of age, good health and has a college degree. The Husband is currently earning approximately $75,000 gross annual with benefits. The parties’ two children are minors but both are in school. Two years ago, the Wife decided to pursue a business opportunity which would provide her flexibility of scheduling so she could spend more time with the children. Unfortunately, during the past two years, the Wife has not generated enough gross receipts in order to pay herself a salary from this business. The Husband is now the sole source of support for the family. A divorce proceeding is instituted and the Wife requests, among other claims, permanent periodic alimony. Will she prevail? What can the Husband do to mitigate? Assuming the parties’ marriage is long term, the Wife has a present need and the Husband has some ability to so contribute, I believe the Wife can legitimately claim permanent periodic alimony. However, the Husband may argue that the Wife is (and remains) voluntarily under-employed and has a comparable earning capacity to him. In this instance, the Husband would have the burden of proving that the Wife has a recent work history and job qualifications to obtain comparable employment with comparable pay in the local community. One way to prove up that the Wife is voluntary under-employed is to enlist the services of an expert vocational rehabilitation specialist/ evaluator.
All sources of income are to be considered in determining one’s ability to contribute towards the other spouse’s support and/ or the other spouse’s need for support. For example, if the spouse with a perceived ability to pay owns a closely held corporation (let’s say, he or she is the only owner), and an approximate $ 10,000 of ordinary income is in the business’ account at the end of the quarter, is this amount to be considered in determining that spouse’s ability to pay? What if the spouse who is seeking permanent periodic alimony is earning interest and/ or receiving dividends on his or her investments or is receiving other income of a recurring nature, such as from a family member? These are facts that must be explored by the attorney as part of the mandatory disclosure requirement (namely, both parties must provide financial information in the form of pay stubs or other evidence of income; bank records; statements of account; etc.). Sometimes, an expert CPA may be enlisted to perform a forensic accounting, which would include a determination of the sources of income, any concealment of income, transfers of assets for less than fair market value, and the nature of expenditures (for example, is one’s business paying for personal expenses).
Alimony may be subject to modification, up or down. In order to obtain a modification, the one requesting same must prove that a substantial change(s) in circumstance has (have) arisen warranting a modification. What constitutes a substantial change in circumstance warranting modification? Each case is unique and is dependent on it’s own particulars. Simply being let go from a job is a change but may not prove to be a “substantial” change if same is not a permanent loss of employment or income potential. Being injured on the job and temporarily unable to work may also not be a permanent loss warranting a modification. Let’s say the obligor spouse loses his job through no fault of his own (the company he worked for downsized due to bad economic times). He was making $ 60,000 per year at the time he was let go. Subsequent to termination, the former husband undertakes a diligent job search looking for a position with comparable pay but is only able to find work within the range of $ 32,000 to $ 40,000 per year without benefits. If, arguendo, the former husband was diligent in his pursuit of a job, then this fact pattern may warrant a downward modification of his support obligation. On the flip side, what if the former wife enters into a “supportive relationship” and is less in need. This, too, may amount to a situation in which the obligor may seek a downward modification. The case law defining what constitutes a “supportive relationship” is across the board but Florida law does provide for a downward modification (or termination, if applicable) in such instances.
For more information, please feel free to inquire. The foregoing IS NOT intended as legal advice or a representation. If you are in need of legal advice, please feel free to inquire by calling 727-895-5858. I do provide a free initial consultation.