High Net Worth Divorce in Florida Archives -

Posts

Modifying Alimony Orders After a High Net-Worth Divorce in Florida

Understanding Alimony Modifications in High Net-Worth Divorces in Orlando

Orlando is a thriving city where many professionals, business owners, and executives call home. With success often comes complexity, particularly when a high net-worth divorce involves ongoing financial obligations such as alimony. Florida law allows for modifications to alimony under specific circumstances, and these changes can impact both the paying and receiving spouse. Whether you are seeking to modify an existing alimony order or challenging an attempt to do so, understanding the legal landscape is critical.

I’m Beryl Thompson-McClary, an Orlando high net-worth divorce Attorney, and I have extensive experience helping clients on both sides of this issue. If you need legal representation for an alimony modification case, call 1-888-640-2999to schedule a consultation. I handle complex divorce and alimony matters throughout Orange County, Florida and will provide the strategic legal guidance necessary to protect your financial interests.

When Can Alimony Be Modified in Florida?

Florida law allows modifications to alimony orders under specific conditions. Under Florida Statutes §61.14, a former spouse may petition the court to increase, decrease, or terminate an alimony obligation if there is a substantial change in circumstances. Courts will not modify alimony simply because one party disagrees with the original ruling; rather, the change must be material, involuntary, and permanent.

Common Reasons for Alimony Modifications

Changes in Income

One of the most common reasons to modify alimony is a significant change in income. If the paying spouse experiences a substantial drop in earnings due to factors beyond their control, they may seek to reduce their alimony payments. Similarly, if the receiving spouse’s financial situation improves significantly, the paying spouse may petition for a reduction or termination of alimony.

For example:

A high-earning professional loses their job or experiences a severe decline in business revenue.
The recipient spouse receives a substantial salary increase or inherits wealth.
The paying spouse retires in good faith and no longer has the same level of income.

Remarriage or Cohabitation of the Recipient Spouse

Under Florida Statutes §61.14(1)(b), alimony may be reduced or terminated if the recipient spouse remarries or enters into a supportive relationship. Courts assess cohabitation cases carefully, looking at:

Whether the recipient spouse shares expenses with a new partner.
Whether they present themselves as a married couple.
The financial interdependence of the new relationship.

Health and Medical Issues

A serious health condition affecting either party can justify modifying alimony. If the paying spouse develops a debilitating medical condition that limits their earning capacity, they may request a reduction. On the other hand, if the receiving spouse becomes incapacitated and unable to support themselves, they may seek an increase.

Changes in Financial Obligations

If the paying spouse incurs significant financial obligations, such as additional child support or unexpected business losses, they may petition for an alimony modification. However, voluntary expenses, such as extravagant purchases or starting a new business, will not typically justify a modification.

The Legal Process for Modifying Alimony

Filing a Petition for Modification

To request an alimony modification, the requesting party must file a Petition for Modification of Alimony with the court that issued the original divorce decree. This petition must outline the substantial change in circumstances and provide supporting evidence.

Presenting Evidence to the Court

The burden of proof falls on the party seeking the modification. This requires presenting:

Financial records (pay stubs, tax returns, and business earnings statements).
Medical documentation (if health is a factor in the modification request).
Evidence of cohabitation or remarriage (if seeking termination due to a new relationship).

If both parties agree to a modification, the court can approve it without a contested hearing. If there is disagreement, the case proceeds to litigation, where the judge will decide based on the evidence presented.

Defending Against an Unjustified Modification Request

If you are the recipient of alimony and your former spouse is attempting to reduce payments without valid justification, you have legal grounds to challenge the petition. Florida courts take into account bad faith reductions in income, such as a spouse deliberately underemploying themselves to avoid alimony obligations. I provide aggressive legal representation to ensure my clients’ financial security remains intact.

High Net-Worth Considerations in Alimony Modifications

High net-worth individuals often have complex financial arrangements, including stock options, business ownership, and investments. These elements require forensic accounting and financial analysis to ensure that any modification is based on an accurate assessment of income and assets.

Key issues unique to high net-worth cases include:

How bonuses, stock options, and investment income impact alimony calculations
Valuation of business interests and their effect on spousal support obligations
Whether lifestyle adjustments justify modifications in high net-worth divorces
Estate planning considerations in long-term alimony cases

With years of experience handling high-stakes divorces, I ensure that my clients receive fair treatment when alimony modifications are requested.

FAQs About Modifying Alimony in Florida

Can alimony be modified if my ex-spouse is earning more money now?

Yes. If your former spouse has experienced a significant increase in income, you may request a reduction in alimony. However, you must provide clear evidence showing their financial improvement.

Can I request an alimony reduction if I retire?

Possibly. Retirement is considered a substantial change in circumstances, but the court will evaluate whether your retirement is voluntary and reasonable based on your age, health, and financial situation.

How does Florida define a ‘supportive relationship’ for terminating alimony?

Florida courts assess several factors, including shared expenses, length of the relationship, and whether the couple presents themselves as married. If these elements are present, alimony may be reduced or terminated.

How long does the alimony modification process take?

The timeline varies based on whether the modification is contested. Uncontested modifications can be resolved in a few months, while contested cases may take a year or more.

Can I oppose my ex-spouse’s request to reduce alimony?

Yes. If their claim is not supported by legitimate financial hardship, you can present evidence demonstrating that no substantial change in circumstances has occurred.

What happens if my ex-spouse refuses to pay alimony after a modification request?

Until the court approves a modification, they must continue making payments. If they stop, you can seek legal enforcement, including wage garnishment or contempt of court proceedings.

Do I need an attorney to modify alimony in Florida?

Yes. Given the complexities of high net-worth divorce cases, professional legal representation ensures that your financial interests are fully protected during the modification process.

Contact Orlando Attorney Beryl Thompson-McClary at 1-888-640-2999 For A Consultation

Alimony modifications in high net-worth divorces require skilled legal representation to ensure fairness for both parties. Whether you are seeking an adjustment or defending against one, I am here to help. Call 1-888-640-2999 to schedule a consultation and discuss your case today.

Beryl Thompson-McClary
Address: 390 N Orange Ave #2300, Orlando, FL 32801, United States
Hours: Open
Phone: 1-888-640-2999
Google Business Profile
Directions

February 26, 2025/by James

Divorce

The Calculation of Child Support in a Florida Divorce

The State of Florida determined that the best way to ascertain how much child support an individual should pay is to have a table within the child support statute that provides the guidelines for calculating the proper amount. Before these guidelines, there was no consistency, rhyme, or reason for the amount of child support that parents were required to pay.

The child support guidelines are premised upon a specific mathematical formula that takes into consideration each parent’s respective income and the amount of children involved. The guidelines include a worksheet that guides you through the parent’s health insurance costs and other things that are deducted from a parent’s income. It also walks you through deducting income tax and takes into consideration the amount of alimony paid from one parent to another. Furthermore, it takes into account the cost of day care, the child’s health insurance, and other miscellaneous factors to arrive at a proper child support amount that ensures that the child or children’s needs are sufficiently met.

While the child support guidelines are surely a cost saving device by divorcing parents and attorneys alike, there are still areas that are contested. For instance, if one parent isn’t working up to his or her potential, the court can impute income to that individual and determine a proper child support amount as if he or she is fully employed.

While the child support guidelines are meant to simplify the process of calculating child support in a Florida divorce, it is still important to work with Florida Family Law Attorney who will have a specific software program that ensures accuracy and streamlines the process. Since child support is paid until the child or children of the divorcing couple reach the age of majority, it is critical to make sure that the amount of child support is accurate.

If you are contemplating a divorce in Florida involving high-net-worth or high-value assets, you need a skilled Florida divorce lawyer who knows the system. Attorney Beryl Thompson-McClary has 28 years of litigation experience and is extremely dedicated to achieving the best results for her clients. Schedule a confidential consultation today at no cost to you by calling our Orlando office at (888) 640-2999.

November 2, 2020/by James

Divorce

Special Considerations for a High Net Worth Divorce in Florida

Going through a divorce as a high net worth individual, you have a number of things to consider in trying to divide your life into two households. Businesses, houses, retirement plans, stocks, alimony, and support all come into play and present complicated circumstances the average person might not have to encounter. One of the best ways to prepare is to understand what to expect.

How Does Florida Divide Assets in a Divorce?

Florida follows the law of “equitable distribution,” meaning divorce courts in the state will sort out which property is marital and nonmarital and then divide the marital property according to what is most fair for both spouses. Generally, marital property is that which you acquired during the marriage, while nonmarital property you acquired before the marriage.

In deciding what is most fair for each spouse to receive from the marital property, the court overseeing your divorce will consider many aspects of your marriage, including:

The contribution to the marriage by each spouse, including contributions to the care and education of the children and services as a homemaker.
The economic circumstances of the parties.
The duration of the marriage.
Any interruption of personal careers or education opportunities of either party.
The contribution of one spouse to the personal career or education opportunity of the other spouse.
The desirability of retaining any asset, including an interest in a business, corporation, or professional practice, intact and free from any claim or interference by the other party.
The contribution of each spouse to the acquisition, enhancement, and production of income or the improvement of, or the incurring of liabilities to, both the marital assets and the nonmarital assets of the parties.
The desirability of retaining the marital home as a residence for any dependent child of the marriage, or any other party, when it would be equitable to do so, it is in the best interest of the child or that party, and it is financially feasible for the parties to maintain the resident until the child is emancipated or until exclusive possession is otherwise terminated by a court of competent jurisdiction. In making this determination, the court shall first determine if it would be in the best interest of the dependent child to remain in the marital home; and, if not, whether other equities would be served by giving any other party exclusive use and possession of the marital home.
The intentional dissipation, waste, depletion, or destruction of marital assets after the filing of the petition or within 2 years prior to the filing of the petition.
Any other factors necessary to do equity and justice between the parties.

What Will Happen to My Business?

One of the biggest considerations for a person going through a high net worth divorce is his or her business. Like other property, you first need to decide whether the business is marital property then figure out how to divide it if so.

In order to attempt to divide a business, it must first be valued. The leading method for valuing a Florida business during a divorce is hiring a forensic certified public accountant (CPA), who will appraise the value of the business by examining all the relevant aspects of the business, including the nature of the business, the size of the business, the business’ financial records, and the good will and reputation of the business.

Once the value has been assigned, assuming neither spouse wants to liquidate the business, the court overseeing your divorce will order a division of the business through one of the following means:

Giving the business entirely to one spouse and offsetting the value by giving the other spouse other marital assets or alimony; or
Giving a portion of the business to both spouses.

Do I Have to Split My Retirement Benefits?

Spouses will usually be entitled to a share of each other’s retirement benefits, even where one spouse has a larger account balance or where one spouse did not work outside of the home during the marriage. The court will also consider the nature of the retirement accounts, whether traditional, defined contribution, or defined benefit, and how much of the account balances is fully vested.

Defined-Contribution Plan

A defined-contribution plan is what ordinarily comes to mind first when people talk about retirement accounts. This includes 401k plans, IRAs, and Roth IRAs, where the employee sets aside money every pay period to be invested and eventually grown into a retirement fund. These set asides are also usually added to by the employer through some kind of profit sharing.

Defined-contribution plans are divided between the spouses based on what portion of the account balance is fully vested. For instance, if at the time of the divorce, a spouse’s 401k is 50 percent vested, and all of the money in the account was contributed during the marriage, the court will divide 50 percent of the balance. Importantly, the non-account holding spouse will not be entitled to additional money accrued in the account after completion of the divorce.

Defined-Benefit Plan

Defined-benefit plans usually involve pensions that require certain criteria to be met. The employee can expect to receive a set sum, often in regular payments, upon putting in a certain number of years with the employer. In dividing defined-benefit plans, the non-account holding spouse can take a monetary offset or can elect to receive payments from the account upon reaching retirement age.

Stock Options

High net worth individuals will often have stock options they need to consider dividing with their spouses. These options allow corporate employees to buy stock at a set price or receive a cash sum equal to stock shares after working a set amount of time, all while avoiding the regulatory caps placed on standard retirement plans. Employees thereby have the opportunity to make and save a great sum of money. Depending on when the stock options were bought or offered, they could be considered marital property that will need to be divided.

It is very important to remember the tax implications of retirement accounts and stock options, especially where the non-account holding spouse is accepting a money offset instead of a portion of the account. Retirement accounts are often tax delayed, meaning taxes have not been withheld from the money before it is placed in the account. When the account is eventually withdrawn, taxes will be taken out. For this reason, $100,000 in a 401k is not the same as $100,000 in cash. The court and spouses need to consider this when configuring how to divide any relevant retirement benefits.

Contact Our Orlando Divorce Law Firm Today

As a high net worth individual, you have unique circumstances, and you need an experienced lawyer who understands them. Attorney Beryl Thompson-McClary has been in the business for nearly 30 years and will work diligently to achieve the results you need while keeping your costs in mind. The seasoned legal team at Law Office of Beryl Thompson-McClary, P.A., can start protecting your assets today. Schedule a confidential consultation at no cost to you by calling our Orlando office at (888) 640-2999.

May 22, 2019/by James