Florida Divorce Law...

Florida Law - May the Court Consider Tax Issues.

The court may consider tax issues both in setting spousal maintenance and in dividing the property.

The tax issues that arise most frequently are:

• Tax that would be paid if securities or mutual funds were sold.
• Tax that would be paid if the family home were sold.
• The deductibility of alimony to the payer and inclusion in income of the recipient.
• The non-deductibility of child support and non-inclusion in income of the recipient.
• The income tax exemption for a child, which sometimes may be given to either parent.

However, the court will consider the tax effects only when the proposed situation is imminent.

Cases:

Goodwin (1994) 640 So2d 173 (court would not consider tax effects when sale of home was not imminent).

Livingston (1994) 633 So2d 1162 (to see amount taxes on husband's separate property cost estate, take (separate income/total income) * total taxes).

England (1993) 626 So2d 330 (court would not consider tax effects when sale of business was not imminent).

Werner (1991) 587 So2d 473 (court will consider tax effects).

Sweeney (1991) 583 So2d 398 (court should not revisit its decision if spouse fails to get tax exemption on sale of home).

Huntley (1991) 578 So2d 890 (court will consider tax effects).

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