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Alimony Modification Case Hinges on More Than One Argument

Posted on: 08.1.16 By Alan Frisher

Alimony modificationJust because a spouse agrees to pay a certain amount of money in alimony at the onset of divorce, it doesn’t mean he or she must continue to pay that same amount until death do they part.

Circumstances often change. People lose jobs, become ill, get re-married, or eventually retire – all of which can have an impact their ability to pay. For these, and other reasons, alimony payers can go to court and request a modification.

Sometimes a judge will agree to a modification; sometimes he or she won’t. Then there’s always the option to appeal.

Such was the case for Lee Fischer who asked a Palm Beach County trial court judge to modify the alimony payment he was making to his ex-wife Candice stating that there had been two substantial changes in circumstances. First, he said, he had a reduced ability to pay due to his “desire to retire in the near future.” Second, he contended that his former wife had a reduced need for alimony due to the fact that she was receiving lifetime monthly annuity payments and had inherited a considerable amount of assets from her family and boyfriend.

On the second day of trial, and before Mr. Fischer was able to the present testimony of two additional witnesses, the judge dismissed the case noting that because Mr. Fischer had just recently retired, he had no track record of his post-retirement income and that his reduced ability to pay was speculative and premature. In fact, Mr. Fischer had just retired the week before trial.

Mr. Fischer argued that regardless of his income, the trial court could still reduce alimony on the grounds that his former wife no longer had a need. The trial court disagreed and dismissed the entire petition.

Mr. Fischer appealed his case before the Fourth District Court of Appeal in Palm Beach County and won. The appellate court found that the trial court violated Mr. Fischer’s right to due process by involuntarily dismissing his petition before he finished presenting his case. The appellate court also found the trial court erred in dismissing the petition based only on the one argument – his anticipated reduction in income due to his retirement – failing to take into consideration his former wife’s change in financial circumstances.

In cases where there is more than one argument, the trial court can dismiss the entire case only if the plaintiff fails to provide sufficient evidence for each of the arguments. In this case, Mr. Fischer was able to show his ex-wife had a reduced or eliminated need for alimony, which should have been sufficient to allow Mr. Fischer to present the rest of his case. The appellate court then kicked the case back to the trial court for a rehearing.

In most states, including Florida, a substantial change in need or in an ability to pay may be grounds for alimony modification. These changes include, but are not limited to health issues; long-term unemployment; retirement; an increase in income the result of a significant raise, a substantial gift, inheritance or even lottery winnings; and remarriage by the person receiving alimony, among others.

Florida alimony law is also in the midst of potential reform. One of the major reformations would be to specifically define “substantial change” so as to allow for, and expect, modification.

Unfortunately, there are legal costs associated with asking for a modification that not only include attorney’s fees, but also court fees, expert witness fees (if required), and in some cases even private investigator fees.

Of course, some of these issues can be avoided at the onset of a divorce settlement through the use of a Certified Divorce Financial Analyst. He or she can assist you in determining if you’ll have enough resources to support your current lifestyle as well as your lifestyle into the future.

Why you need a Certified Divorce Financial Analyst on your team

Posted on: 06.2.16 By Alan Frisher

Divorce financesWe’ve all heard them before – divorce horror stories from spouses who were “taken to the cleaners” or who “got a raw deal” in the divorce settlement. But it doesn’t have to end that way if you bring in the right team of professionals to assist you through the process.

While a family law/divorce attorney can provide you with legal advice, once it comes time to divide the marital assets, you might want to consider adding a Certified Divorce Financial Analyst or CDFA to your team.

This is not the same as a financial advisor or an accountant. A CDFA is specially trained and equipped with the necessary knowledge and expertise to help those going through a divorce protect their financial future. CDFA’s work in conjunction with attorneys on a wide range of needs to make sure you achieve a financially fair divorce settlement.

A CDFA can help you to get a handle on your assets, liabilities, income and expenses to determine how much money you will need to live on after the divorce is finalized. And, if children are involved, how much child support will be needed.

He or she will conduct a financial analysis of your situation and review any holdings you may have – stocks, bonds, real estate, retirement plans, etc. – that is to be divided. This will help you to determine, not only their present-day value, but also their potential value in the future. This will help you to make a budget for your post-divorce life. CDFAs also can drill down into your finances and help to identify the tax consequences of different settlement scenarios.

Oftentimes those going through a divorce only look at the here-and-now and fail to take into consideration the implications of today’s financial decisions on their future. While a CDFA doesn’t have a crystal ball, they can help you look down the road to determine what long-term impact a divorce settlement might have on your finances, well into your retirement. This empowers those going through a divorce by providing the financial knowledge needed to move forward.

There’s no doubt that going through a divorce is an emotional experience. Many times, spurned spouses will use money to get back at the person they once thought they would spend the rest of their lives with. A CDFA can, not only help to take that emotion out of the decision-making process, but also to create a more even playing field designed to result in a fair and equitable resolution.

Did you know that the average length of a U.S. divorce is one year? Battles over money are the main reason many divorces drag on for months, or even years. By using the services of a CDFA upfront you will have the critical financial information you need at your fingertips. This will help your divorce attorney when it comes down to negotiating a settlement and possibly getting through the process sooner.

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