Posted by Nydia Streets of Streets Law in Florida Divorce
When parties are married and then separate for several years before they file for divorce, during their period of separation, they may each be incurring debts which will be jointly owed. This is why it may be important to have a valid separation agreement, prenuptial agreement or post-nuptial agreement. The division of assets and debts after a six-year separation was an issue in the case Gayer v. Gayer, 6D23-17 (Fla. 6th DCA June 16, 2023).
The parties were married in 2002 and separated in 2012. Six years passed before a petition for divorce was filed. In this six-year period, the former husband took out an SBA FEMA loan and incurred taxes and penalties from making an early withdrawal from his retirement account. The court also awarded durational alimony of $1,000 per month for 10 years to the former wife. The former husband appealed.
As to the loan and the taxes and penalties incurred from the retirement account withdrawal, the appellate court ruled it was error to assign these to the former husband as his non-marital debts and/or to give credit to the former wife for the taxes because there was no evidence that she paid them. The court also remanded for the trial court to correct inconsistencies between the equitable distribution chart attached to the final judgment and the court’s actual rulings. Last, the court reversed on alimony because the trial court did not make findings regarding need and ability to pay, and based the award on gross, rather than net, income.
Schedule your consultation with a Miami family law attorney to understand how the law may apply to the facts of your case.