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Financial considerations during a divorce in Florida

| Jun 24, 2021 | Divorce

If you have joint assets going into divorce, then you need to consider how to best split them with your spouse. A judge can make the decision for you, but you will most likely want to negotiate with your spouse to find an agreement that you’re both happier with.

Marital assets

Florida considers assets that you acquired during the marriage as marital assets. Gifts and inheritances, however, aren’t marital assets. If your prenuptial or postnuptial agreement states that each spouse owns the individual assets they acquired during the marriage, then you won’t have to divide them as long as the agreement is valid.

Tax considerations

After a divorce, you have to report alimony as income on your tax returns. Child support isn’t tax deductible.

If you are dividing certain types of assets, such as your retirement account, you should calculate the tax implications of each possibility in dividing your assets to determine the best route to take. You may decide to not split one asset in order to keep more money in both of your pockets. A financial professional could help you make these calculations to determine what makes the most sense to do in your divorce.

Financial support

Florida takes into consideration the behavior of the spouses during their marriage when making decisions on spousal and child support. Other factors the court considers are the number of children to support, the child’s needs and the parent’s ability to pay. Non-custodial parents must have enough money to support themselves in order for the judge to rule that they need to pay child support.

You must know how your finances will change after your divorce to prepare yourself for losing your spouse’s income. Negotiating an agreement with your spouse is ideal so that you don’t wait on a judge to make the property division choices for you. A lawyer or another mediator may guide you in creating a plan.