Florida business owners may have particular concerns to prioritize when they think about divorce. People who own small, closely held businesses may discover that their companies constitute the bulk of marital assets. They may be uncertain of how they can keep the business intact after the end of their marriage. After all, the financial effects of a divorce can linger long after the emotional and practical issues have been handled.
When people in Florida decide to divorce, there can be significant financial consequences. This is especially true when there are major financial disparities between the parties or when the marriage has persisted for a long period of time before the decision to separate. In some of these cases, spousal support may be an appropriate mechanism to allow the lower-earning spouse to adjust their lives after the divorce and avoid sudden poverty. However, spousal support is only one part of the total process; in many cases, it cannot be calculated until overall property division is dealt with.
When Florida parents get a divorce, arranging for child support may be necessary. It's important to remember that these payments are not taxable or tax-deductible. However, the parent who the child lives with more than half the time is usually permitted to claim a dependent on their taxes. This could result in some significant savings. Parents who share custody might agree to take turns with this claim.
When Florida couples decide to get a divorce, they may want to take some steps to protect themselves online. Many couples share passwords, so the first step should be changing each account. There are services that can help choose secure passwords and keep them safe.
Florida is home to many successful entrepreneurs, business owners, retirees and working professionals. However, it is also home to lots of couples who are considering divorce. When unpleasant factors come together in a high-asset separation, questions are bound to pop up regarding money and how it will be split. Unfortunately, divorce can bring out dishonesty in some spouses, leading to hidden bank accounts and secret spending.
An unhappy couple in Florida should understand how challenging a divorce can be. There are valid reasons why divorce is often compared to going to war. For example, couples may see negotiation during a divorce as a case of winning or losing. Instead of viewing negotiation as an opportunity to make an agreement, they may see it as a time for battle. Each side could get locked in their position and refuse to make any compromise.
Knowing what financial mistakes are common during a divorce may help some estranged Florida couples avoid making them. Talking about personal issues on social media can be one error. After a man discussed his expensive vacation and closing a successful deal, his claim that he could not afford a proposed divorce settlement was less credible.
When two people get married in Florida, one of them will usually become financially dependent on the other, placing their financial future in the hands of their significant other. However, when the same couple gets divorced, the dependent spouse has to face the fact that they are now responsible for themselves. Additionally, if both spouses want a clean break, then the dependent spouse should find a new financial adviser along with a new financial team, especially if the team both of them relied on during the marriage was found by the providing spouse.
Changing alimony rules may affect the way that people in Florida decide to divorce. In late 2017, Congress passed the Tax Cuts and Jobs Act. One of the most significant aspects of the law is how it changes the way taxes treat spousal support. While the law was passed in 2017, the alimony changes do not go into effect until January 1, 2019. This caused many people to escalate their timelines and finalize their divorces in 2018 under the existing rules.
Florida couples engaged in divorce proceedings already know how emotional a separation can be. However, many get caught off-guard by the hidden financial pitfalls that often come along with the dissolution of a marriage. There are a number of mistakes that divorcing couples make regarding personal finance and tax liabilities that can present monetary challenges for years after a divorce has been finalized.