Some Florida residents planning to divorce may wonder about the tax implications. Divorce often includes the sale of a home. The Internal Revenue Code may allow a spouse to exclude some of the gain from a home sale from being considered income. Knowing how to take advantage of these laws can become important in a complex asset divorce.
When a couple gets divorced, many financial matters have to be settled. This is especially true for people with numerous assets. Because Florida is an equitable distribution state, assets are divided in a fair and equitable manner but not necessarily 50-50. A spouse who is divorcing in Florida should be aware of the factors that judges take into consideration when dividing assets.
Many Florida divorcees may forget to consider the tax consequences of their divorces. There are many things that recent divorcees may not consider when filing their taxes, such as alimony. The divorced couple should discuss who will be claiming the children on their taxes because this can make a significant difference in overall tax liability. Many divorcees may also want to consult a professional tax service to make sure that they are doing their taxes properly, particularly in the first year after their divorce.
Those in Florida who are attempting to change alimony laws faced a setback with the vetoing of a proposed law by the governor, but they have not given up the fight to change how spousal support is handled in the state. Alimony tends to be a point of contention during divorce because few people want to pay their ex after it has gone through. Still, there are very valid reasons why alimony was developed.
Mako Surgical Corp entered into a settlement with Stanmore Implants Worldwide Ltd. over a patent dispute. The settlement denoted that Mako will receive Stanmore's robotic business assets as well as its intellectual property. Furthermore, Mako has agreed to drop its patent-infringement litigation in two federal courts and the U.S. International Trade Commission, and Stanmore will withdraw from robotics. The dispute between Mako and Stanmore revolved around computerized surgical devices and software. Mako is a Florida-based company, and Stanmore is a London-based company that received U.S. regulatory approval to market one of its products that is used for knee surgery. Stanmore's Sculptor Robotic Guidance Arm competed with Mako's RIO Robotic Arm Interactive Orthopetic system. By securing the property division of its competitor, Mako has effectively taken a potential robotic competitor off the market, says an analyst.
Many sellers in the Florida real estate market make up a niche that has become a specialty for some agencies. Couples going through a divorce often face challenges beyond those experienced by other sellers. The division of marital property can be contentious, and the different types of conflicts can have an effect on home showings, offers from prospective buyers and price negotiations.
Most Florida residents would likely consider a $338 million jackpot to be a boon, but for the New Jersey man who won the March 23 drawing, the big win has also drawn the attention of law enforcement officials in the state and no small amount of public scrutiny regarding an allegedly shirked responsibility. The man is reportedly on the hook for $29,000 in back child support, and law enforcement officials have noted that he is potentially subject to arrest if he doesn't pay what he owes. The man has reportedly opted for a lump sum, which will ultimately come out to $211 million, still a respectable chunk of change. The drawing proved to be a lucky one for individuals in several states, including a $2 million Power Play winner in Iowa; Match 5 players won $1 million each in 11 states, including Florida. In all, over $30 million in non-jackpot prizes were awarded in the national drawing, and the jackpot is down to $50 million for the next drawing.
Although divorce is common today, many couples who have decided to end a relationship have no idea where to begin once the decision is made. They are unsure what happens to their property and assets when the petition to divorce is filed. Those who have assets that they inherited or brought into the marriage may be worried that the division of marital property ordered by family court will force them to split assets that are solely in their name.Generally, however, a court will not consider separate assets in the division of property during divorce proceedings, so individuals will retain their rightful property. However, experts caution that many people make the mistake of putting an inheritance or assets and property acquired prior to a marriage in the names of both themselves and their spouse. If this happens, the property or assets in question become joint marital property and will be divided accordingly. This is considered transmutation of property. Be warned however, that laws vary from state to state, and in some jurisdictions, an estranged spouse living on the property is enough to consider it marital property.
Proponents of changing alimony laws in Florida are getting closer to reaching that goal. The alimony reform bill has passed two House committees and a committee in the Senate in the state capitol, indicating that the bill is getting closer to becoming law. The implications of passing the bill are significant as existing alimony settlements may be reworked. The current laws in Florida allow alimony in certain circumstances. The court weighs several factors before awarding alimony, including the length of the marriage, level of education and earning power of each spouse. Current laws allow for a permanent award for alimony. The proposed bill would set stricter guidelines and end permanent alimony. The representative who is backing the bill believes that it is time to change the alimony structure because the family structure has changed over time. Opponents to the bill believe that the changes would prevent parents from staying home to raise their kids.
As the population ages, there has been an increase in the number of divorces that occur after the age of 50, also known as gray divorces. Gray divorces carry with them a number of issues that are not associated with divorces between younger couples, especially when it comes to property division. While dividing a couple's assets is a huge point of contention in most divorces, thanks to issues related to retirement, it can have a much larger impact on older divorcing couples.Those over the age of 50 are usually thinking about retirement, and the way assets are divided during a divorce can dramatically change people's options. Retirement accounts and IRAs are considered to be marital assets that are eligible for division. When individuals are older, it is much harder for them to rebuild these accounts once depleted, meaning that they may end up needing to work longer or change their retirement plans.