Posted by Nydia Streets of Streets Law in Florida Alimony
Can a discharge of debts in bankruptcy lead to a modification of alimony in Florida? According to the case Kraus v. Kraus, 3D21-740 (Fla. 3d DCA August 24, 2022), it can. This is because the debt discharge could lead to better ability to pay by the payor.
In this case, the former husband filed a petition seeking increased alimony from the former wife, alleging the former wife discharged marital debts in bankruptcy, thereby improving her financial situation and placing the former husband in the position of having potential tax liability. The former husband also alleged the former wife received an increase in salary. At a trial on the former husband’s petition, he presented evidence of his medical condition and loss of income. Based on the evidence presented, the trial court granted the former husband’s request for increased alimony and the former wife appealed.
The appellate court first considered the former wife’s argument that evidence of the former husband’s medical condition and loss of income should not have been considered because these issues were not pled by the former husband. The court disagreed, holding that because the former wife did not object at the hearing when these issues were raised by the former husband (and she even cross examined him on these issues), they were tried by consent. The court concluded “Finally, the trial court’s order modifying alimony was supported by competent substantial evidence. The former husband presented testimony and evidence that the former wife relieved herself of her obligation to assume the marital debt by filing for bankruptcy, and that her salary had considerably increased, constituting a permanent and substantial change in her ability to pay alimony.”
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