Below are additional questions addressed by Divorce Coach Lee Wright and Attorney Tom Marks regarding the “Nuts and Bolts of Divorce” In this blog, Mediation and additional financial aspects of Divorce are covered. To learn more about the filing stage of a Divorce, read part one of this interview.
Lee: “Tom, how are Marital Assets split in a Divorce? Is it 50/50?”
Tom: “Because Florida is an Equitable Distribution state, the starting point is a 50/50 split of the Marital Assets and Debts. To further define this, a Marital Asset or a Marital Debt is anything that was earned or accumulated between the date of the Marriage and the Date of Filing the Petition for Dissolution of Marriage. There are some exceptions, such as an inheritance that was kept separate. So, it covers from the date of the Marriage to the date of filing the Petition.”
Lee: “So if someone is deciding when to file and they are taking assets and debts into consideration, they would need to be aware of Equitable Distribution?”
Tom: “Yes, my Clients have even asked about the importance of the date of filing. This date affects many aspects of their case. If they are concerned that their spouse is accumulating a lot collecting debt, I encourage them to take action to cut that off by filing the Petition. This way, any debt accrued after the date of filing is solely the responsibility of their spouse. Also under Florida law, we have short-term Marriages (<10 years), medium-term Marriages (10-20 years), and long-term Marriages (20+ years) cases. Stereotypically, if the Husband initiates Divorce, he may want to file prior to the 20th year of Marriage to avoid long-term Alimony payments. Recently, the legislature changed definitions of short, medium and long term marriages and how that affects Alimony. Also, Permanent Periodic Alimony no longer exists in Florida and Durational Alimony has a formula now.”
Lee: “Tell us more about the formula for Durational Alimony.”
Tom: “We calculate a percentage difference in the Husband’s and Wife’s net incomes and multiple that by 35% of the difference. It was very subjective in the past, but using the formula makes things easier.”
Lee: “Are there any other types of Alimony in Florida?”
Tom: “There are five types of Alimony in Florida, Durational is not the only type. We also have Temporary, Bridge the Gap, Rehabilitative and Lump Sum.”
Lee: “Maybe in a future conversation, we can dig deeper into defining each type. Moving on, if a couple is living separately at the time of filing and there’s no agreement for temporary assistance– What do you recommend to your Clients in a similar situation?”
Tom: “It depends on the specifics surrounding each Client. Generally, in Central Florida all the counties require that the parties go to Mediation before you have a Hearing. The reason being is that nearly 80% of cases are going to settle at Mediation. Let’s say the Judges have 1,000 cases, well 800 of them are going to settle. Meaning they would only have to deal with 200 cases, so Judges are advocates of Mediation. But if the parties cannot agree during Mediation, then the Court’s going to have to make the decision. Before you go to Court you have what I call a De Facto set of circumstances. It’s just the facts regarding a Temporary Timesharing schedule, Temporary Spousal Support, etc. There’s also an Administrative Order that goes into effect when the case is filed. It gets served with the Petition for Dissolution of Marriage and it says basically, “You must maintain the status quo of the Marriage.” In other words, you cannot drop your spouse from insurance, you can’t remove your spouse from the bank accounts, credit cards, etc. Everything that has been historically paid throughout the duration of the Marriage has to be maintained until you either get to Mediation or resolve it with the Judge.”
Lee: “What about a situation where one of the spouses owns a business. Could the business valuation be tabled at Mediation and everything else be addressed and settled?”
Tom: “Yes. Depending on the complexity and the size of the business and whether it’s personal goodwill or enterprise goodwill, a financial professional may need to complete a business valuation. There are abbreviated business valuations that are less expensive and then there are full-blown options that are very expensive.”
Lee: “Some Lawyers want to drag out the Divorce process. How do Judges approach the potential sensitive timelines of Family Law cases?”
Tom: “Judges are smart and are in communication with each other. They recognize efficient Attorneys who strive for timely resolution and appreciate those who don’t clog their Court with unnecessary Motions. In cases where it is appropriate, I even recommend an Informal Settlement Conference, especially when I am on the same page with Opposing Counsel. This allows just the four of us to meet and exchange Parenting plans or Marital Settlement Agreements and get things done, sometimes even before Mediation. An Informal Settlement Conference potentially cuts down costs. Mediations can be expensive with two Family Law Attorneys and a Mediator all present during a lengthy Mediation.”
To learn more about Mediation, CLICK HERE.
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